The efficient and stable planning for interrupted supply chain with dual‐sourcing strategy: a robust optimization approach considering decision maker's risk attitude

Abstract

• Proposing an efficient and robust dual-sourcing model for disrupted supply chain • Considering various risk attitudes and interruption uncertain situations • Processing supply interruption uncertainty with robust optimization method • Applying the real case study to analyze validity and stability of model • Providing useful managerial implications for interrupted supply chain sourcing In the face of the complex market environment and the in-depth development of globalization, ensuring the supply chain's stability and cost leadership by developing a differentiated dual-source procurement strategy is extremely important. The present study contemplates the supply chain as the research object. It also considers disruption uncertainty and decision-makers’ risk attitudes. To minimize costs and shortages, we build a dual-objective robust optimization model for a dual-sourcing strategy under interruption risk. The authors aim to explore efficient and robust planning under supply disruption uncertainty in dual-sourcing strategies by different risk attitudes. The research employs the augmented ε-constraint method to solve the proposed model by transforming the model into a single-objective mixed-integer programming model. Additionally, our study uses enterprise examples to prove the feasibility and effectiveness of the model. Moreover, it conducts risk attitude analysis, dual objective function trade-off analysis, and superiority analysis of procurement strategies. Finally, we put forward some management insights to provide a new decision-making idea for real supply chain enterprises in the case of supply interruption risk.