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Optimally configuring a two-stage serial line supply chain under the guaranteed service model

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  • Hua, N. Grace
  • Willems, Sean P.

Abstract

Design-and-development buyers sourcing new supply chains and strategic sourcing analysts making outsourcing decisions for existing supply chains are in different organizations but share a common problem. Both determine whether an existing part should be replaced. Relative to the existing part, new candidates could be cheaper with longer leadtime, or more expensive with shorter leadtime. Furthermore, a longer leadtime part could be buffered with inventory and this could be cheaper than paying more for a shorter leadtime part.

Suggested Citation

  • Hua, N. Grace & Willems, Sean P., 2016. "Optimally configuring a two-stage serial line supply chain under the guaranteed service model," International Journal of Production Economics, Elsevier, vol. 181(PA), pages 98-106.
    • Handle: RePEc:eee:proeco:v:181:y:2016:i:pa:p:98-106
    DOI: 10.1016/j.ijpe.2016.06.007
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    References listed on IDEAS

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    2. Barros, Júlio & Cortez, Paulo & Carvalho, M. Sameiro, 2021. "A systematic literature review about dimensioning safety stock under uncertainties and risks in the procurement process," Operations Research Perspectives, Elsevier, vol. 8(C).
    3. Fichtinger, Johannes & Chan, Claire (Wan-Chuan) & Yates, Nicola, 2019. "A joint network design and multi-echelon inventory optimisation approach for supply chain segmentation," International Journal of Production Economics, Elsevier, vol. 209(C), pages 103-111.

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