Optimal inventory policy for capacitated systems with two supply sources

Optimal inventory policy for capacitated systems with two supply sources

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Article ID: iaor2013729
Volume: 41
Issue: 1
Start Page Number: 12
End Page Number: 18
Publication Date: Jan 2013
Journal: Operations Research Letters
Authors: ,
Keywords: combinatorial optimization
Abstract:

We study a periodic review, dual‐sourcing inventory problem where suppliers are differentiated based on their variable and fixed costs as well as their order size constraints. Based on the preservation of quasi‐convexity and the proposed preservation of strong CK‐convexity, we partially characterize the structure of the optimal policy.

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