Inventory policies in dual sourcing systems with uncertain yield

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

1 Scopus citations


We study a spare part supply system where both Traditional Manufacturing and Additive Manufacturing (also know as 3D printing) are used for replenishment of the spare parts inventories. Demands for the spare parts occur according to a Poisson process, and the failed parts are immediately replaced from the inventory, if available. If inventory is not available, items are backordered and fulfilled when a spare becomes available (i.e., a replenishment is received from one of the suppliers). Additive Manufacturing offers the advantage of shorter lead times, however, at higher production costs. Moreover, Additive Manufacturing processes often have uncertain yield, leading to the fact that not every produced part will satisfy the quality control and can be used to replenish the inventory. In this paper, we propose a Linear Programming (LP) based optimization problem that decides which of the processes to use for replenishment of the inventory while minimizing the total (holding + backorder) system costs.

Original languageBritish English
Title of host publicationOptimization Problems and Their Applications - 7th International Conference, OPTA 2018, Revised Selected Papers
EditorsMichael Khachay, Yury Kochetov, Anton Eremeev, Panos Pardalos, Panos Pardalos
PublisherSpringer Verlag
Number of pages8
ISBN (Print)9783319937991
StatePublished - 2018
Event7th International Conference on Optimization Problems and Their Applications, OPTA 2018 - Omsk, Russian Federation
Duration: 8 Jun 201814 Jun 2018

Publication series

NameCommunications in Computer and Information Science
ISSN (Print)1865-0929


Conference7th International Conference on Optimization Problems and Their Applications, OPTA 2018
Country/TerritoryRussian Federation


  • Additive manufacturing
  • Dual sourcing
  • Markov-Decision Processes
  • Spare part logistics


Dive into the research topics of 'Inventory policies in dual sourcing systems with uncertain yield'. Together they form a unique fingerprint.

Cite this