Analysis of a Dual-Source Production-Inventory Problem With Quantity Constraints

Document Type

Article

Publication Date

1-1-2011

Abstract

In this paper, we study a production-outsourcing problem in which the firm has two supply sources. Demands are random variables and supply/production capacity is unlimited. We discuss the problem, analyse the firm's sourcing strategies, and compute the policies. The policies are then evaluated through extensive simulation studies that aim to provide important insights with respect to the performance under varied demand and cost parameters as well as different service level requirements of the firm.

DOI

10.1504/IJADS.2011.038088

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