Abstract
This paper seeks to provide academic researches with a better understanding about the determination of supplier number to control supply chain risk. By introducing multi-supplier strategy and some assumptions of the suppliers, a supply chain model based on traditional newsvendor model is proposed. This model considers both supply risk and demand risk. A nonlinear integer programming model is built to determine an optimal supplier number of this supply chain, and the risks under this model are analyzed. Simulations are also made to test this model under different market demand distribution. This paper presents a supplier number determination model which can maximize expected profit of a supply chain company under supply risk and demand risk (stochastic demand). Key words: Supply chain, supply chain risk, risk analysis, stochastic demand.
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