Analysis of a Continuous Review Stock-control Model with Multiple Suppliers

Sculli, D.; Shum, Yu-Su

doi:10.1057/jors.1990.125

Cited by 57 publications

(2 citation statements)

References 4 publications

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“…Their numerical results show that for a given stock-out probability during replenishment, both the reorder level and the buffer stock can be lower when using two suppliers simultaneously. Sculli and Shum (1990) extend this model to the n-supplier model, i.e., the replenishment order is split among n independent suppliers simultaneously. They derive approximate expressions for the mean and variance of the effective lead time.…”

Section: Uncertainty In Supply Timing: Stochastic Lead Timementioning

confidence: 99%

Trends in Supply Chain Design and Management

Jung¹,

Jeong²,

Chen³

2007

Springer Series in Advanced Manufacturing

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Section: Uncertainty In Supply Timing: Stochastic Lead Timementioning

confidence: 99%

Trends in Supply Chain Design and Management

Jung¹,

Jeong²,

Chen³

2007

Springer Series in Advanced Manufacturing

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“…The use of order splitting during an order cycle seems to have received much attention recently. For example, Kelle and Silver [1] analyze the safety stock reduction by order splitting assuming the Weibull-distributed lead times, and Sculli and Shum [2] present numerical results on the e!ect of order splitting on the lead-time demand. Ramasesh et al [3], Lau and Zhao [4], and Chiang and Benton [5] further develop a total cost model, respectively to obtain the optimal reorder point and order quantity jointly.…”

Section: Introductionmentioning

confidence: 99%

Order splitting under periodic review inventory systems

Chiang¹

2001

International Journal of Production Economics

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Most research on order splitting have focused on the reduction of safety stock in the multiple sourcing setting. Moreover, all works study the use of order splitting for the continuous review inventory systems. In this paper, we investigate the possibility of the multiple-delivery arrangement in the sole sourcing environment. In addition, we concentrate on the reduction of cycle stock for periodic review systems. We show that splitting an order into multiple deliveries can signi"cantly reduce the total cost especially if the cost of despatching an order for an item is not small. Although the use of information technology such as EDI decreases the ordering cost and thus shortens the period length, order splitting remains a cost-e!ective approach as long as the cost of despatching an order is not close to zero.2001 Elsevier Science B.V. All rights reserved.

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Sole sourcing versus dual sourcing under stochastic demands and lead times

Chiang

Benton

1994

Naval Research Logistics

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The use of a single vendor for each inventoried item is usually assumed in most of the inventory models. However, there are situations where the use of more than one vendor should be considered, especially when lead times are stochastic. This research presents a theoretical investigation of the effect of cost structures on the relative performance of sole‐sourcing versus dual‐sourcing inventory control policies. We show that except for cases where the ordering cost is high, the lead‐time variability is low, or the customer service level is low, dual sourcing performs better than sole sourcing under the normally distributed demand and shifted‐exponential lead times. Moreover, the computational results indicate the dual sourcing provides a better service level than sole sourcing at the optimal solutions, and that dual sourcing results in larger order quantities than sole sourcing, which suggests that attractive quantity discounts may not be in jeopardy when dual sourcing is employed. Finally, because it is generally known that multiple sourcing can enhance the competition among suppliers, material managers should consider splitting purchase orders when two equally qualified suppliers are available. © 1994 John Wiley & Sons, Inc.

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Analysis of a Continuous Review Stock-control Model with Multiple Suppliers

Cited by 57 publications

References 4 publications

Trends in Supply Chain Design and Management

Trends in Supply Chain Design and Management

Order splitting under periodic review inventory systems

Sole sourcing versus dual sourcing under stochastic demands and lead times

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