Article ID: | iaor1999561 |
Country: | Netherlands |
Volume: | 94 |
Issue: | 3 |
Start Page Number: | 527 |
End Page Number: | 547 |
Publication Date: | Nov 1996 |
Journal: | European Journal of Operational Research |
Authors: | Chiang Chi, Gutirrez Genaro J. |
We describe a periodic review inventory system in which there are two modes of resupply, namely a regular mode and an emergency mode. Orders placed through the emergency channel have a shorter supply lead time but are subject to higher ordering costs compared to orders placed through the regular channel. We analyze this problem within the framework of an order-up-to-