Robert N. Boute

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We consider a two-echelon supply chain: a single retailer holds a finished goods inventory to meet an i.i.d. customer demand, and a single manufacturer produces the retailer's replenishment orders on a make-to-order basis. In this setting the retailer's order decision has a direct impact on the manufacturer's production. It is a well known phenomenon that(More)
One of the main supply chain deficiencies is the bullwhip effect: demand fluctuations increase as one moves up the supply chain from retailer to manufacturer. The Beer Distribution Game is widely known for illustrating these supply chain dynamics in class. In this paper we present a spreadsheet application, exploring the two key causes of the bullwhip(More)
We consider a two echelon supply chain where a single retailer holds an inventory of finished goods to satisfy an i.i.d. customer demand, and a single manufacturer produces the retailer's replenishment orders on a make-to-order basis. The objective of this paper is to analyse the impact of the retailer's replenishment policy on total supply chain(More)
Motivated by the recent trend of offshoring manufacturing facilities to seek lower production cost, while keeping some costly local facilities to better respond to changes in market demand, this paper studies a dual sourcing policy and characterizes the average sourcing allocation. We consider the total landed cost from origin (combining a cheap but slow(More)
We consider a supply chain in which orders and lead times are linked endogenously, as opposed to assuming lead times are exogenous. This assumption is relevant when a retailer's orders are produced by a supplier with finite capacity and replenished when the order is completed. The retailer faces demands that are correlated over time – either positively or(More)
It is almost unquestionably accepted by most observers that inventory ratios decreased over time. There are so many Enterprise Resource Planning systems implemented and so many just-in-time ideas successfully introduced in companies that we almost automatically conclude that inventories went down. However , as will be shown in this study, this conclusion is(More)
A fter decades of offshoring production across the world, companies are rethinking their global networks. Local sourcing is receiving more attention, but it remains challenging to balance the offshore sourcing cost advantage against the increased inventories, because of its longer lead time, and against the cost and (volume) flexibility of each source's(More)
Traditionally, lot sizing decisions in inventory management trade-off the cost of placing orders against the cost of holding inventory. However, when these lot sizes are to be produced in a finite capacity production/inventory system, the lot size has an important impact on the lead times, which in turn determine inventory levels (and costs). In this paper(More)