CSpace  > 应用数学研究所
Dual Sourcing Policy for a Continuous-Review Stochastic Inventory System
Cao, Ping1; Yao, Dacheng2,3
AbstractWe study a continuous-review inventory system with dual sourcing modes and Brownian motion demand. The regular order is from one supplier at some constant rate with a low unit cost while the expedite order is from the other one with a fixed setup cost and an expensive unit cost. With usual holding/shortage cost, the system's objective is to choose a regular constant order rate and an expedite replenishment policy such that the long-run average cost is minimized. We show that the regular ordering rate must be strictly less than the expected demand rate and an optimal expedite ordering policy is the well-known (s, S) policy. In particular, based on the theoretical analysis, we give a computational algorithm to demonstrate how to find the optimal regular ordering rate lambda* and expedite policy parameters s* and S*. Finally, using the algorithm, we investigate the effects of system's parameters on the optimal policy parameters and value of dual sourcing by numerical studies.
KeywordBrownian motion demand dual sourcing inventory control setup cost (s, S) policy
Funding ProjectNational Science Foundation of China[11771432] ; National Science Foundation of China[71771202] ; National Science Foundation of China[71520107002]
WOS Research AreaAutomation & Control Systems ; Engineering
WOS SubjectAutomation & Control Systems ; Engineering, Electrical & Electronic
WOS IDWOS:000473489700023
Citation statistics
Document Type期刊论文
Corresponding AuthorYao, Dacheng
Affiliation1.Univ Sci & Technol China, Sch Management, Hefei 230026, Anhui, Peoples R China
2.Chinese Acad Sci, Acad Math & Syst Sci, Inst Appl Math, Beijing 100190, Peoples R China
3.Chinese Acad Sci, MADIS, Beijing 100190, Peoples R China
Recommended Citation
GB/T 7714
Cao, Ping,Yao, Dacheng. Dual Sourcing Policy for a Continuous-Review Stochastic Inventory System[J]. IEEE TRANSACTIONS ON AUTOMATIC CONTROL,2019,64(7):2921-2928.
APA Cao, Ping,&Yao, Dacheng.(2019).Dual Sourcing Policy for a Continuous-Review Stochastic Inventory System.IEEE TRANSACTIONS ON AUTOMATIC CONTROL,64(7),2921-2928.
MLA Cao, Ping,et al."Dual Sourcing Policy for a Continuous-Review Stochastic Inventory System".IEEE TRANSACTIONS ON AUTOMATIC CONTROL 64.7(2019):2921-2928.
Files in This Item:
There are no files associated with this item.
Related Services
Recommend this item
Usage statistics
Export to Endnote
Google Scholar
Similar articles in Google Scholar
[Cao, Ping]'s Articles
[Yao, Dacheng]'s Articles
Baidu academic
Similar articles in Baidu academic
[Cao, Ping]'s Articles
[Yao, Dacheng]'s Articles
Bing Scholar
Similar articles in Bing Scholar
[Cao, Ping]'s Articles
[Yao, Dacheng]'s Articles
Terms of Use
No data!
Social Bookmark/Share
All comments (0)
No comment.

Items in the repository are protected by copyright, with all rights reserved, unless otherwise indicated.