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Sole versus dual sourcing in a continuous-review inventory system with lost sales

✍ Scribed by Esmail Mohebbi; Morton J.M. Posner

Publisher
Elsevier Science
Year
1998
Tongue
English
Weight
320 KB
Volume
34
Category
Article
ISSN
0360-8352

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✦ Synopsis

AbstractÐWhile existing cost analysis studies on the problem of sole versus dual sourcing only deal with the backorder case, we present an exact treatment of this problem in the context of a lost sales inventory system with compound Poisson demand and exponentially distributed lead times. The stationary distribution of the inventory level (stock on hand) and the corresponding cost functions with/without a service level constraint are derived using a level-crossing methodology, and numerical results are presented.

πŸ“œ SIMILAR VOLUMES

A continuous-review inventory system wit
A continuous-review inventory system with lost sales and variable lead time
✍ Esmail Mohebbi; Morton J.M. Posner πŸ“‚ Article πŸ“… 1998 πŸ› John Wiley and Sons 🌐 English βš– 123 KB

Using a system-point (SP) method of level crossings, we derive the stationary distribution of the inventory level (stock on hand) in a continuous-review inventory system with compound Poisson demand, Erlang as well as hyperexponentially distributed lead times, and lost sales. This distribution is th