Single versus dual sourcing strategies research considering the risk of supply chain disruption

Successful supply chain management necessitates an effective sourcing strategy to combat uncertainties in both supply and demand. This paper is focused attention on single sourcing versus dual sourcing considering the risk of supply chain disruption by analyzing sourcing strategies of two-stage supply chain under demand non-stationary. The model is presented of the Expected Profit Function (EPF) about single and dual sourcing. And then we compare two EPFs considering the risk of supply chain disruption and present the optimal sourcing strategy on different environment. Finally, some simple numerical value analyses are obtained, and these analyses identify the optimal sourcing strategy depends on the probability of supply chain disruption occurring and the backup supplier proportion of the demand.