In this paper we investigate four sourcing scenarios with respect to both cooperative or non-cooperative planning strategies, and sole or dual sourcing strategies. A two-stage supply chain is considered, which includes a single buyer and either a single or dual vendor(s). The objective is to minimize the total system costs incurred by the buyer and the vendor(s). A major finding is that determining the best strategy among those considered requires a detailed analysis in each case. Furhtermore, when the total system costs are taken into account, dual sourcing may not be as beneficial as sometimes claimed in the literature on lot splitting.
Proceedings Second International Workshop on Successful Strategies in Supply Chain Management, 2009, p. 281-288
Dual-sourcing; Integrated production-inventory; Joint economic lot sizing; Order splitting; Vendor-buyer co-ordination
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Second International Workshop on Successful Strategies in Supply Chain Management, 2009