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dc.contributor.authorBoute, Robert
dc.contributor.authorDisney, Stephen M.
dc.contributor.authorVan Mieghem, Jan A.
dc.date.accessioned2019-05-06T14:05:27Z
dc.date.available2019-05-06T14:05:27Z
dc.date.issued2019en_US
dc.date.issued2019
dc.identifier.doi10.2139/ssrn.3140083
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6347
dc.description.abstractWe investigate the emerging trend of near-shoring a small part of the global production to local SpeedFactories. The short lead time of the responsive SpeedFactory reduces the risk of making large volumes in advance, yet it does not involve a complete re-shoring of demand. Using a break-even analysis we investigate the lead time, demand, and cost characteristics that make dual sourcing with a SpeedFactory desirable compared to complete off-shoring. We propose order rules that extend the celebrated inventory optimal order-up-to replenishment policy to settings where capacity costs exist and demonstrate their excellent performance. We highlight the significant impact of autocorrelated and non-stationary demand series, which are prevalent in practice yet challenging to analyze, on the economic benefit of re-shoring. Methodologically, we adopt Z-transforms and present exact analyses of several discrete-time linear production-inventory models.en_US
dc.description.abstractWe investigate the emerging trend of near-shoring a small part of the global production to local SpeedFactories. The short lead time of the responsive SpeedFactory reduces the risk of making large volumes in advance, yet it does not involve a complete re-shoring of demand. Using a break-even analysis we investigate the lead time, demand, and cost characteristics that make dual sourcing with a SpeedFactory desirable compared to complete off-shoring. We propose order rules that extend the celebrated inventory optimal order-up-to replenishment policy to settings where capacity costs exist and demonstrate their excellent performance. We highlight the significant impact of autocorrelated and non-stationary demand series, which are prevalent in practice yet challenging to analyze, on the economic benefit of re-shoring. Methodologically, we adopt Z-transforms and present exact analyses of several discrete-time linear production-inventory models.
dc.language.isoenen_US
dc.language.isoen
dc.subjectInventory Managementen_US
dc.subjectOrder Smoothingen_US
dc.subjectOrder-Up-To Policyen_US
dc.subjectAuto-Regressive Demanden_US
dc.subjectIntegrated Moving Average Demanden_US
dc.subjectGlobal Outsourcingen_US
dc.subjectDual Sourcingen_US
dc.subjectZ−transformen_US
dc.subjectInventory Management
dc.subjectOrder Smoothing
dc.subjectOrder-Up-To Policy
dc.subjectAuto-Regressive Demand
dc.subjectIntegrated Moving Average Demand
dc.subjectGlobal Outsourcing
dc.subjectDual Sourcing
dc.subjectZ−transform
dc.titleDual sourcing and smoothing under non-stationary demand time series: Re-shoring with speedfactoriesen_US
dc.titleDual sourcing and smoothing under non-stationary demand time series: Re-shoring with speedfactories
dc.source.numberofpages47en_US
dc.source.numberofpages47
dc.contributor.departmentCardiff University - Cardiff Business Schoolen_US
dc.contributor.departmentNorthwestern University - Kellogg School of Managementen_US
dc.contributor.departmentCardiff University - Cardiff Business School
dc.contributor.departmentNorthwestern University - Kellogg School of Management
vlerick.knowledgedomainOperations & Supply Chain Managementen_US
vlerick.knowledgedomainOperations & Supply Chain Management
vlerick.typecommWorking paperen_US
vlerick.typecommWorking paper
vlerick.vlerickdepartmentTOMen_US
vlerick.vlerickdepartmentTOM
dc.identifier.vperid102358en_US
dc.identifier.vperid102358


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