Article ID: | iaor1990852 |
Country: | United States |
Volume: | 28 |
Start Page Number: | 43 |
End Page Number: | 49 |
Publication Date: | Oct 1987 |
Journal: | Production and Inventory Management Journal |
Authors: | Hayya Jack C., Pan Andrew |
Computer simulation studies demonstrate that splitting orders between several vendors improves inventory performance in a reorder point, order quantity inventory control system. The authors show that going from one vendor to two reduces (a) the risk of a stockout between receipts of orders, (b) the average inventory on hand, and (c) the number of stockouts when compared with placing orders with a single vendor.