Sole versus dual sourcing in stochastic lead-time (s,Q) inventory models
Management Science
Supplier selection and order lot sizing modeling: A review
Computers and Operations Research
Vendor selection in outsourcing
Computers and Operations Research
An evolutionary algorithm for order splitting with multiple transport alternatives
Expert Systems with Applications: An International Journal
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In this paper, we consider a dual-sourcing model with constant demand and stochastic lead times. Two suppliers may be different in terms of purchasing prices and lead-time parameters. The ordering takes place when the inventory level depletes to a reorder level, and the order is split among two suppliers. Unlike previous works in the order splitting literature, the supply lead time between vendor and buyer as well as unit purchasing prices is considered to be order quantity dependent. The proposed model finds out the optimal reorder point, order quantity and splitting proportion, using a solution procedure. Numerical results show that neglecting the relationship between ordering batch size and lead times is a shortcoming that hides one of order splitting advantages. Moreover, connecting unit prices to order quantity can decrease the percentage saving from dual sourcing compared to sole sourcing. Furthermore, sensitivity analysis shows some managerial insights.