Dual sourcing in a serial system
Document Type
Article
Publication Title
Production and Operations Management
Abstract
We consider a finite?horizon, periodic?review model for a serial system with two uncapacitated external suppliers. While one external supplier (regular supplier) ships to the most upstream stage, the other one (emergency supplier) ships directly to a downstream stage. For this system, with general lead?times we show that the optimal cost function is multimodular with respect to inventories in transit and inventories at different stages and obtain results that show how the optimal order quantities change with respect to these inventories. Our analysis also leads to sufficient conditions under which modified echelon?basestock?type policies are optimal.
DOI Link
Publication Date
1-12-2017
Publisher
Sage Journals
Volume
Vol.26
Issue
Iss.12
Recommended Citation
Sapra, Amar, "Dual sourcing in a serial system" (2017). Faculty Publications. 509.
https://research.iimb.ac.in/fac_pubs/509
