Are more suppliers better?

Are more suppliers better?

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Article ID: iaor1996409
Country: United Kingdom
Volume: 46
Issue: 7
Start Page Number: 892
End Page Number: 895
Publication Date: Jul 1995
Journal: Journal of the Operational Research Society
Authors: ,
Keywords: supply
Abstract:

This paper investigates how the mean and variance of lead time change with the number of suppliers. Using known analytical results for the means and variances of the ‘first’ and ‘spacing’ lead times, the authors give simple decision rules to find the optimal numbers of suppliers when lead times are uniformly or exponentially distributed.

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