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Abstract This paper proposes a comprehensive emergency strategy consisting of alternate supplier, repair of failed suppliers and re-optimizing of supply plan for a three-echelon supply chain with one supply node’s failure. On the basis of the integrated strategy, the multi-period emergency planning problem under uncertain demand scenarios is formulated as a stochastic programming model that considers the tradeoff between penalty cost of stockout, setup cost of alternate supplier and repair cost of the failed supplier. The model aims to minimize the expected operational cost after disruption by means of the selection of emergency strategies at each time period and re-optimizing of supply plan. Finally, computational results for an illustrative case indicate the validation of the proposed model.
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Received: 08 October 2011
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2013, Vol. 10 
