Dual Sourcing Strategy for High-Tech Manufacturer Under Supply Risk and Capacity Constraint

High-tech manufacturers frequently suffer from supply risk and capacity constraint. This paper considers a manufacturer who procures a type of high-tech component from two suppliers with asymmetric costs, capacities, and reliabilities, where the low-cost supplier has low reliability. One supplier is selected as a primary supplier and another as a backup supplier. The manufacturer places regular order to the primary supplier and determines backup...