Robust supply base management: Determining the optimal number of suppliers utilized by contractors
AbstractThe importance of robust supply base management under demand uncertainty requires an understanding of the benefits associated with a contractor having an optimal number of suppliers. The key benefit is a reduction in a contractor's total cost of supply base management. However, few supplier-optimizing models incorporate the perspectives of both demand uncertainty and supply base management costs. The objective of this paper is twofold: (1) to investigate the dynamics between demand uncertainty and coordination; and (2) to develop a model that determines the optimal number of suppliers that a contractor should maintain in its supply base to become more flexible and maximize its profits.
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Bibliographic InfoArticle provided by Elsevier in its journal International Journal of Production Economics.
Volume (Year): 134 (2011)
Issue (Month): 2 (December)
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Web page: http://www.elsevier.com/locate/ijpe
Demand uncertainty Optimal number of suppliers Robustness Optimal control Supply chain coordination;
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