An inventory system with two suppliers and default risk

This paper considers the problem of joint replenishment and pricing for a single product with two suppliers and supply disruption. Our objective is to maximize the total profit by choosing an appropriate replenishment and pricing policy. We not only obtain that the form of the optimal policy has a (s,S,p,σ,Σ)(s,S,p,σ,Σ)-type, but also analyze how supply disruption affects the profit function and the optimal policy.