| Tekijä: | Zhao, L-G. Lau, H-S. |
| Otsikko: | Reducing inventory costs and choosing suppliers with order splitting |
| Lehti: | Journal of the Operational Research Society
1992 : OCT, VOL. 43:10, p. 1003-1008 |
| Asiasana: | INVENTORY CONTROL COSTS SUPPLY |
| Kieli: | eng |
| Tiivistelmä: | Splitting orders among several suppliers is a common business practice. Two earlier studies pointed out that, when splitting an order between two suppliers , the major benefit in inventory related costs is in the reduction of stockouts due to the reduction of the effective lead time and the effective lead time demand. This conclusion implies that, among several suppliers, one should select the two suppliers with the lowest average lead times. In contrast, the recent study shows that an important benefit is in the reduction of average inventory, and this benefit can only be realized when one selects a second supplier with a "suitably" larger average lead time than the first - a strategy that contradicts the selection rule of the former study. |
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