Analysis of a dual-source production-inventory problem with quantity constraints
by Bin Zhou, John Wang, Ruiliang Yan
International Journal of Applied Decision Sciences (IJADS), Vol. 4, No. 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.

Online publication date: Mon, 29-Sep-2014

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