ARMA(1,1) market demand decomposition in a global dual sourcing setting


The firm decomposes the ARMA(1,1) market demand process into two parts: one for the nearshore source and one for the offshore source. We show the inventory costs in the dual-sourcing case can be reduced to a level comparable to the near-shore single-source case.

34rd Production and Operations Management Society Annual Conference, April 25th-29th, Minneapolis, USA