Name
Abstract | ||
|---|---|---|
For enterprises, it is imperative that the trade-off between the cost of inventory and risk implications is managed in the most efficient manner. To explore this, we use the common example of a wholesaler operating in an environment where suppliers demonstrate heterogeneous reliability. The wholesaler has partial orders with dual suppliers and uses lateral transshipments. While supplier reliability is a key concern in inventory management, reliable suppliers are more expensive and investment in strategic approaches that improve supplier performance carries a high cost. Here we consider the operational strategy of dual sourcing with reliable and unreliable suppliers and model the total inventory cost where the likely scenario lead-time of the unreliable suppliers extends beyond the scheduling period. We then develop a Customized Integer Programming Optimization Model to determine the optimum size of partial orders with multiple suppliers. In addition to the objective of total cost optimization, this study takes into account the volatility of the cost associated with the uncertainty of an inventory system. |
Year | DOI | Venue |
|---|---|---|
2018 | 10.1080/17517575.2018.1432766 | ENTERPRISE INFORMATION SYSTEMS |
Keywords | Field | DocType |
Decision support system,dual sourcing,lateral transshipment,supplier heterogeneity,cost volatility | Systems engineering,Scheduling (computing),Computer science,Decision support system,Operations research,Integer programming,Decision model,Total cost,Inventory cost | Journal |
Volume | Issue | ISSN |
12.0 | 5 | 1751-7575 |
Citations | PageRank | References |
0 | 0.34 | 18 |
Authors | ||
4 | ||
Name | Order | Citations | PageRank |
|---|---|---|---|
| Dilupa Nakandala | 1 | 37 | 8.04 |
| Henry C. W. Lau | 2 | 301 | 33.27 |
| Jingjing Zhang | 3 | 10 | 2.33 |
| Angappa Gunasekaran | 4 | 997 | 64.97 |