Exact evaluation of a two sourcing supply chain with order splitting and information sharing

We consider a single item, two-level inventory system which consisting of two suppliers and one retailer. Transportation times are constant. The retailer faces Poisson demands and applies continuous (R,Q) policy. Each supplier starts with m initial batches of size Q/2 and places an order in a batch of size Q/2 to an outside source immediately after the retailer¿s inventory position reaches R+s. In this paper using the idea of the one-for-one ordering policy, we derive the exact value of the expected total cost in the convergent coordinated supply chain.