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Simplicity or flexibility? Dual sourcing in multi-echelon systems under disruption

Research output: Contribution to journal › Article › peer-review

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Simplicity or flexibility? Dual sourcing in multi-echelon systems under disruption. / Hamdan, Sadeque; Boulaksil, Youssef; Ghoudi, Kilani et al.
In: Operations Research Perspectives, 01.06.2025.

Research output: Contribution to journal › Article › peer-review

HarvardHarvard

Hamdan, S, Boulaksil, Y, Ghoudi, K & Hamdouch, Y 2025, 'Simplicity or flexibility? Dual sourcing in multi-echelon systems under disruption', Operations Research Perspectives. https://doi.org/10.1016/j.orp.2025.100333

APA

Hamdan, S., Boulaksil, Y., Ghoudi, K., & Hamdouch, Y. (2025). Simplicity or flexibility? Dual sourcing in multi-echelon systems under disruption. Operations Research Perspectives. Advance online publication. https://doi.org/10.1016/j.orp.2025.100333

CBE

Hamdan S, Boulaksil Y, Ghoudi K, Hamdouch Y. 2025. Simplicity or flexibility? Dual sourcing in multi-echelon systems under disruption. Operations Research Perspectives. https://doi.org/10.1016/j.orp.2025.100333

MLA

Hamdan, Sadeque et al. "Simplicity or flexibility? Dual sourcing in multi-echelon systems under disruption". Operations Research Perspectives. 2025. https://doi.org/10.1016/j.orp.2025.100333

VancouverVancouver

Hamdan S, Boulaksil Y, Ghoudi K, Hamdouch Y. Simplicity or flexibility? Dual sourcing in multi-echelon systems under disruption. Operations Research Perspectives. 2025 Jun 1. Epub 2025 Mar 21. doi: 10.1016/j.orp.2025.100333

Author

Hamdan, Sadeque ; Boulaksil, Youssef ; Ghoudi, Kilani et al. / Simplicity or flexibility? Dual sourcing in multi-echelon systems under disruption. In: Operations Research Perspectives. 2025.

RIS

TY - JOUR

T1 - Simplicity or flexibility? Dual sourcing in multi-echelon systems under disruption

AU - Hamdan, Sadeque

AU - Boulaksil, Youssef

AU - Ghoudi, Kilani

AU - Hamdouch, Younes

PY - 2025/3/21

Y1 - 2025/3/21

N2 - Disruptive events like the COVID-19 pandemic have exposed supply chain vulnerabilities. This study focuses on dual sourcing as a resilient strategy and examines a stochastic, single-item, multi-echelon, multi-period, dual sourcing inventory system under backorders. In each echelon, the decision-maker faces a dual-sourcing situation wherein the item can be replenished from a slow regular supplier or a more expensive and faster emergency supplier. We compare two inventory management policies: the Dual-Index Policy (DIP) and the Tailored Base-Surge (TBS) Policy, while also investigating how various factors influence policy effectiveness and the role of demand disruptions. Our findings indicate that the TBS policy generally relies more on upstream suppliers than the DIP. However, in scenarios of high demand uncertainty, upstream suppliers are seldom used. DIP is more effective for short networks facing sudden demand drops, whereas TBS excels when experiencing demand spikes.

AB - Disruptive events like the COVID-19 pandemic have exposed supply chain vulnerabilities. This study focuses on dual sourcing as a resilient strategy and examines a stochastic, single-item, multi-echelon, multi-period, dual sourcing inventory system under backorders. In each echelon, the decision-maker faces a dual-sourcing situation wherein the item can be replenished from a slow regular supplier or a more expensive and faster emergency supplier. We compare two inventory management policies: the Dual-Index Policy (DIP) and the Tailored Base-Surge (TBS) Policy, while also investigating how various factors influence policy effectiveness and the role of demand disruptions. Our findings indicate that the TBS policy generally relies more on upstream suppliers than the DIP. However, in scenarios of high demand uncertainty, upstream suppliers are seldom used. DIP is more effective for short networks facing sudden demand drops, whereas TBS excels when experiencing demand spikes.

U2 - 10.1016/j.orp.2025.100333

DO - 10.1016/j.orp.2025.100333

M3 - Article

JO - Operations Research Perspectives

JF - Operations Research Perspectives

ER -