Companies using just‐in‐time principles are currently moving from centralized to decentralized storage areas. A question that needs to be addressed is whether this move is cost efficient. Presents a costing model which can be used to determine if further consideration should be given to...

We consider a single-product periodic-review inventory system for a retailer who has adopted a dual sourcing strategy to cope with potential supply process interruptions. Orders are placed to a perfectly reliable supplier and/or to a less reliable supplier that offers a better price. The success...