ABSTRACT
The paper mainly studies the selection problem of back-up suppliers in the crisis of supply chain disruption. The manufacturer has an unreliable supplier, and when the unreliable supplier is disrupt, the manufacturer has to select from two reliable back-up suppliers and takes customer service into consideration. Considering purchase cost, management cost of different suppliers and lost sales cost of different customers, the paper establishes a mathematical model and uses LINGO software to solve the optimal option which makes the lowest total cost. And then makes sensitivity analyses of relevant situational parameters include disruption probability of unreliable supplier, proportion of key customers’ needs, management cost of reliable suppliers, purchase cost and lost sales cost. The results of numerical experiments and sensitivity analyses can guide company managers to make the best choice in supply chain disruption.
