Managing Risks of Supply-Chain Disruptions: Dual ... - CiteSeerX

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APPENDIX B: PARAMETER VALUES USED TOOBTAIN THE RESULTSThe table presents the parameters as they were taken to make the Figure 6.1.Table B.1: Parameter ValuesParametersValuesProduct LifetimeDisruption DurationInitial Demand10eDemand Drift 0.1Demand Variance 0.115 years2 yearsMain Supplier Price ( w ) $300MLocal Supplier Price for 100% of the production ( w ) $340Local Supplier Price for x% of the production ( w ) $350Local Supplier Price in case of disruption ( w ) $360Percentage of Production given to the Local Supplierin Normal SituationDelayL3L2L10.30 yearLoss of Market Share 0 %Discount Rate 0.0584
APPENDIX C: MATLAB PROGRAMImportant Notice: the program is very rough. The purpose of the thesis was not to do an efficientprogram, but rather to get reasonable results quickly.1) Structure of the programThis paragraph will explain very briefly the structure of the program.• AlgorithmIt is based on the dynamic program methodology that has been explained in Chapter 5. The mainidea is to work backward all the way to initial conditions. At each period there is a series ofpossible “states of the world” that are characterized by the uncertain variables (level of demand andstate of the main supplier – normal or disruption) and by the current sourcing strategy. For each ofthese states the program will determine what is the best decision in term of sourcing strategy for thefollowing period. This decision only depends on the future and that’s why we can work backwarduntil t=0. This algorithm permits the determination of the optimal sourcing decision process overtime and the valuation of this strategy.• Functions and matrices createdLet us explain shortly the “objects” and functions created in this program.There are two uncertain state variables: the demand and the disruption events. The resulting statesare represented by the triplets (m,k,j) where :- (m.k) stands for the demand level. The function GenBinTree gives the correspondencebetween the couple (m,k) and the demand level. k actually represents the current period.- j is the time of the last disruption.At each node, there are 6 possible states for the firm. The firm can have a sourcing strategy thatconsists in having the main supplier only (referred as supplier 1), the local supplier only (referredas supplier 2) or dual sourcing (referred as supplier “3=1+2”). And the current situation can be85
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Managing Risks of Supply-Chain Disr
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AcknowledgementsI would like to exp
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4.2.5 Conclusions .................
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List of FiguresFigure 1.1: Strategy
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Chapter 1Introduction.Modern supply
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- Levels 2 and 3--between these two
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5. In terms of implementation, Forr
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Some articles focus precisely on di
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2.3 Secure the Supply-ChainThere ar
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1) Firms need to build a resilient
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at ports and airports and along the
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2.6 Conclusions- Increase the secur
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The most adapted approach (single V
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suppliers’. The main objective of
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Some people continue to think that
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Page 98 and 99: elsevalue.DecOneNormal=3;end-------
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