Disruption risk modeling and mitigation in outsourcing

摘要

This paper presents a multiobjective stochastic supplier selection model under single sourcing restrictions. The buyercan procure different types of products from different sources, but a single supplier has to fulfill the entire demandfor a particular product. Capacities at suppliers and demand at the buyer are assumed to be stochastic with knowndistributions and are introduced using chance constraints. An analytical method to linearize chance constraints withbinary variables is presented with an application.