@conference{Boute2018,
  author       = {R.N. Boute and S.M. Disney and J.A. Van Mieghem},
  title        = {Dual sourcing and smoothing under non-stationary demand time series: Re-shoring with SpeedFactories},
  booktitle    = {20th International Symposium on Inventories},
  year         = {2019},
  address      = {Budapest, Hungary},
  month        = {20th-24th August},
  abstract     = {We investigate the emerging trend of near-shoring a small part of the global production
back to local SpeedFactories. The short lead time of the responsive SpeedFactory reduces
the risk of making large volumes in advance, yet it does not involve a complete re-shoring
of demand. Using a breakeven analysis we investigate the lead time, demand, and
cost characteristics that make dual sourcing with a SpeedFactory desirable compared to
off-shoring to a single supplier. We propose order rules that extend the celebrated inventory
optimal order-up-to replenishment policy to settings where capacity costs exist
and demonstrate their excellent performance. We highlight the significant impact of
autocorrelated and non-stationary demand series, which are prevalent in practice yet
challenging to analyze, on the economic benefit of re-shoring. Method- ologically, we
adopt Z−transforms and present an exact analysis of several discrete-time linear inventory
models.},
  }