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dc.contributor.authorBoute, Robert
dc.contributor.authorDisney, Stephen M.
dc.contributor.authorGijsbrechts, Joren
dc.contributor.authorVan Mieghem, Jan A.
dc.date.accessioned2020-12-23T12:44:20Z
dc.date.available2020-12-23T12:44:20Z
dc.date.issued2022en_US
dc.identifier.issn0025-1909
dc.identifier.doi10.1287/mnsc.2020.3951
dc.identifier.urihttp://hdl.handle.net/20.500.12127/6609
dc.description.abstractWe investigate near-shoring a small part of the global production to local SpeedFactories that serve only the variable demand. 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 offshoring. Our analysis employs a linear generalization of the celebrated order-up-to inventory policy to settings where capacity costs exist. The policy allows for order smoothing to reduce capacity costs and performs well relative to the (unknown) optimal policy. We highlight the signficant impact of auto-correlated and non-stationary demand series, which are prevalent in practice yet challenging to analyze, on the economic bene t of re-shoring. Methodologically, we adopt a linear policy and normally distributed demand and use transforms to present exact analyses.en_US
dc.language.isoenen_US
dc.publisherINFORMS (The Institute for Operations Research and the Management Sciences)en_US
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.titleDual sourcing and smoothing under non-stationary demand time series: Re-shoring with speedfactoriesen_US
dc.identifier.journalManagement Scienceen_US
dc.source.volume68
dc.source.issue2
dc.source.beginpage1039
dc.source.endpage1057
dc.contributor.departmentResearch Center for Operations Management, KU Leuven, Belgiumen_US
dc.contributor.departmentCentre for Simulation, Analytics and Modelling, University of Exeter Business School, United Kingdomen_US
dc.contributor.departmentCatolica Lisbon School of Business & Economics, Portugalen_US
dc.contributor.departmentKellogg School of Management, Northwestern University, United Statesen_US
dc.identifier.eissn1526-5501
vlerick.knowledgedomainOperations & Supply Chain Managementen_US
vlerick.typearticleFT ranked journal article  en_US
vlerick.vlerickdepartmentTOMen_US
dc.identifier.vperid102358en_US


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