In multiple sourcing, when supplier lead times are stochastic it makes sense to split any replenishment order into several smaller orders to pool lead time risks. In literature it is always assumed these orders are issued simultaneously to the suppliers. Here we let this simultaneousness assumption be relaxed. We study a dual source system with non-identical suppliers and model the problem as a semi-Markov decision model, allowing the decision maker the choice whether he will simultaneously issue two orders to both suppliers or he will issue the orders to suppliers at two different times.
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24th European Conference on Operational Research EURO 2010