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Abstract This study examines a supply chain consisting of multiple suppliers and one manufacture, considering both supply disruption and capacity restoration factors in maximizing the manufacture’s profit, to investigate the procurement strategy of the manufacture and the capacity restoration strategy of suppliers. It is found that the optimal orders of the unreliable suppliers are ranked by the ratio of cost advantage and supply risk, and are not subject to market size changes. The capacity restoration strategy of suppliers shows that only when the fixed investment cost is sufficiently small or the purchase price is sufficiently large, the supplier needs to invest capacity restoration. When the investment cost coefficient of the supplier is small enough, the supplier will promote its capacity restoration proportion extensively to maximize its own profit. While when the investment cost coefficient of supplier is large enough, there exists an optimal capacity restoration proportion.
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Received: 13 May 2016
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2016, Vol. 13 
