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Author:Chatterjee, S.
Hyvonen, S.
Anderson, E.
Title:Concentrated vs. balanced sourcing: an examination of retailer purchasing decisions in closed markets
Journal:Journal of Retailing
1995 : SPRING, VOL. 71:1, p. 23-46
Index terms:RETAILING
PURCHASING
MARKETS
Language:eng
Abstract:Should a retailer concentrate most of its stock purchases in one wholesale supplier (effectively single sourcing) or balance its purchases between two suppliers (balanced sourcing)? A concentrated purchasing strategy makes the retailer an important customer to its wholesaler, meriting preferential treatment, by creating a larger order volume. The authors examine the tradeoff by modeling the purchasing intentions of food retailers in a closed market which supports essentially two wholesalers, protected by high barriers to entry.
SCIMA record nr: 138430
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