Optimally configuring a two-stage serial line supply chain under the guaranteed service model

N. Grace Hua and Sean P. Willems

International Journal of Production Economics, 2016, vol. 181, issue PA, 98-106

Abstract: Design-and-development buyers sourcing new supply chains and strategic sourcing analysts making outsourcing decisions for existing supply chains are in different organizations but share a common problem. Both determine whether an existing part should be replaced. Relative to the existing part, new candidates could be cheaper with longer leadtime, or more expensive with shorter leadtime. Furthermore, a longer leadtime part could be buffered with inventory and this could be cheaper than paying more for a shorter leadtime part.

Keywords: Supply chain sourcing and design; Multiechelon inventory system; Supply chain configuration (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:181:y:2016:i:pa:p:98-106

DOI: 10.1016/j.ijpe.2016.06.007

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