Optimal Supply Diversification Strategy under Supply Disruption

<div>Optimal order quantity <svg height="14.0461pt" id="M432" style="vertical-align:-3.9436pt" version="1.1" viewbox="-0.0498162 -10.1025 12.5856 14.0461" width="12.5856pt" xmlns="http://www.w3.org/2000/svg" xmlns:xlink="http://www.w3.org/1999/xlink"><g transform="matrix(.013,0,0,-0.013,0,0)"><path d="M474 429L457 433C435 440 389 448 367 448C348 448 323 446 309 443C266 434 195 406 148 366C78 307 23 210 23 101C23 35 55 -12 92 -12C118 -12 146 1 196 35C247 70 311 130 346 173H348L281 -148C268 -211 256 -221 208 -229L191 -232L187 -257L433 -245L437 -219L411 -216C357 -210 350 -205 362 -140L427 207C447 315 461 381 474 429ZM387 387C379 337 363 262 355 236C318 180 201 57 142 57C126 57 112 81 112 128C112 205 150 321 220 376C244 395 280 403 312 403C345 403 370 396 387 387Z"></path></g><g transform="matrix(.0091,0,0,-0.0091,6.383,-5.741)"><path d="M486 158C486 177 478 202 466 220C413 228 386 236 336 262C386 288 413 297 466 304C478 323 486 347 485 366C470 376 444 381 422 380C389 338 368 319 321 288C323 345 329 372 349 422C339 442 322 461 305 470C289 461 271 442 262 422C281 372 287 345 290 288C243 319 222 338 189 380C167 381 142 376 125 366C125 347 133 322 145 304C198 296 225 288 275 262C225 236 198 227 145 220C133 201 125 177 126 158C141 148 167 143 189 144C222 186 243 205 290 236C288 179 282 152 262 102C272 82 289 63 306 54C322 63 340 82 350 102C330 152 324 179 321 236C368 205 390 186 422 144C444 143 470 148 486 158Z"></path></g><g transform="matrix(.0091,0,0,-0.0091,6.318,3.784)"><path d="M528 97L513 125C484 95 440 68 431 68C425 68 421 76 427 107C449 227 476 342 505 451H495L418 424L385 278C338 191 220 62 157 62C145 62 133 76 145 130L200 368C215 434 210 451 183 451C157 451 92 418 24 352L37 324C78 356 106 377 115 377C123 377 122 364 116 340L64 115C58 89 56 68 56 52C56 2 78 -12 103 -12C127 -12 159 -4 190 18C247 59 309 113 366 187H368L351 108C328 1 348 -12 368 -12C403 -12 472 33 528 97Z"></path></g></svg> for unreliable supplier in the case of supply diversification strategy.</div>

Mathematical Problems in Engineering

Optimal Supply Diversification Strategy under Supply Disruption

Figure 22