Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/25541
Title: Coordinated replenishments with alternative supply sources in two-level supply chains
Authors: Ng, CT 
Li, LYO 
Chakhlevitch, K
Keywords: Multi-level inventory systems
Reorder point policies
Issue Date: 2001
Publisher: Elsevier
Source: International journal of production economics, 2001, v. 73, no. 3, p. 227-240 How to cite?
Journal: International journal of production economics 
Abstract: We consider a two-level supply chain with two warehouses and two retailers. Each facility uses a continuous review (R,Q)-ordering policies for stock replenishments. The retailers are identical and face independent Poisson demands. Each warehouse places orders for replenishments with an outside supplier which has unlimited stocks. Transportation times are constant and all stockouts at both levels are completely backordered. Under normal circumstances, all orders of each retailer are delivered by only one warehouse, which is designated to serve that retailer. But in case that the warehouse is out of stock, there are two alternatives to the retailer: to wait an extra time until the warehouse replenishes its stock or to place an order with the other warehouse. However, the latter decision incurs a higher transportation cost. In this paper, we study two inventory models with alternative supply possibilities and different levels of coordination between warehouses and retailers, and compare the performance of these models with that of a traditional model where ordering from only one of the warehouses is allowed for each retailer.
URI: http://hdl.handle.net/10397/25541
ISSN: 0925-5273
DOI: 10.1016/S0925-5273(01)00086-X
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