Structural properties of the optimal policy for dual-sourcing systems with general lead times
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 841-850 |
| Journal / Publication | IIE Transactions (Institute of Industrial Engineers) |
| Volume | 47 |
| Issue number | 8 |
| Online published | 19 Mar 2015 |
| Publication status | Published - 2015 |
Link(s)
Abstract
This article considers a periodic-review inventory problem with two suppliers. The regular supplier has a longer lead time than the expedited supplier but has a lower unit cost. The structural properties of the optimal orders are characterized using the notion of L♮-convexity. Interestingly, the optimal regular order is more sensitive to the late-to-arrive outstanding orders, but the optimal expedited order is more sensitive to the soon-to-arrive outstanding orders. A heuristic policy is designed that provides an average cost saving of 1.02% over the best heuristic policy in the literature.
Research Area(s)
- Control policy, dual-sourcing, lead time
Citation Format(s)
Structural properties of the optimal policy for dual-sourcing systems with general lead times. / Hua, Zhongsheng; Yu, Yimin; Zhang, Wei et al.
In: IIE Transactions (Institute of Industrial Engineers), Vol. 47, No. 8, 2015, p. 841-850.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
