WSEAS Transactions on Business and Economics
Print ISSN: 1109-9526, E-ISSN: 2224-2899
Volume 14, 2017
Optimizing a Collaborative Two Layer Supply Chain with Probabilistic Quality
Authors: Noura Yassine, Abdullah Al Sagheer
Abstract: Two mathematical models for a two-layer supply chain are developed. The models describe the cases of collaborative and non-collaborative supply chains. In each case, explicit expressions for the optimal solution are derived. Moreover, the uniqueness of the optimal solution is demonstrated. The model incorporate the effects of quality and shortages into the classical production model with planned shortages. Numerical examples are presented to illustrate the calculations of the optimal solution and to examine the differences between the two models.