Supply Chain Management with Guaranteed Delivery

@article{Huggins2003SupplyCM,
  title={Supply Chain Management with Guaranteed Delivery},
  author={Eric Logan Huggins and Tava Lennon Olsen},
  journal={Management Science},
  year={2003},
  volume={49},
  pages={1154-1167}
}
We consider a two-stage supply chain under centralized control. The downstream facility faces discrete stochastic demand and passes supply requests to the upstream facility. The upstream facility always meets the supply requests from downstream. If the upstream facility cannot meet the supply requests from inventory on hand, the shortage must be filled by expediting, which will incur per unit and setup costs. Such expediting may take the form of overtime production, which occurs at the end of… CONTINUE READING
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