Optimal Decision with Two Ordering Opportunities for Eastern Route of South-to-North Water Diversion Supply Chain in China

Optimal decision for Eastern Route of South-to-North Water Diversion(SNWD) supply chain under quasi-market environment is studied in this paper,considering cases of one ordering opportunity and two ordering opportunities.Newsvendor optimization model with random precipitation under the condition of demand-precipitation related and demand-precipitation unrelated are built separately,and finally numerical analysis is done and some strategic suggestions are given.The results show that,Increasing precipitation using rate is beneficial to reducing the amount of pumping water resources and saving energy and water resources.The existence of two ordering opportunities makes that optimal ordering amount of water resources for external distributor is less than that with only one ordering opportunity.Under two ordering opportunities condition,second-ordering wholesale price increases as the optimal ordering amount increases as the optimal ordering amount increases.