Are More Suppliers Better? |
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| Authors: | Y Guo R Ganeshan |
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| Institution: | 1.Department of Management Science and Information Systems,Pennsylvania State University, |
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| 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, we give simple decision rules to find the optimal numbers of suppliers when lead times are uniformly or exponentially distributed. |
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