The Optimal Number of Suppliers Considering the Quantity Discount and Supplier Failure
Each company want to minimize its expected cost by selecting multiple suppliers.In this paper,we presented a model to determine the optimal number of suppliers to minimize the expected cost considering quantity discount and supplier failure probability.We carried out several sensitivity analysis to.nd out the elements that affect the optimal number of suppliers.The results indicate that when suppliers are highly reliable,sole sourcing is the lowest cost approach under all experimental conditions.However,as the suppliers become less reliable,additional suppliers may be required to obtain the lowest cost.Finally,it was shown that only in the extreme conditions of unreliable suppliers,high loss to operational cost per supplier,and low ability to mitigate the failure from a partial set of suppliers,having a large number of suppliers is an effective strategy.
supplier failure expected cost order discount
Guang Yang Cunhua Qian
College of Management Science and EngineeringNanjing University of TechnologyNanjing,China College of Management Science and Engineering Nanjing University of Technology Nanjing,China
国际会议
北京
英文
2008-10-12（万方平台首次上网日期，不代表论文的发表时间）