Multiple sourcing: The determination of lead times

  • Authors:
  • Andrew C. Pan;Ranga V. Ramasesh;Jack C. Hayya;J. Keith Ord

  • Affiliations:
  • Central University, Chung-Li, Taiwan;Texas Christian University, USA;The Pennsylvania State University, 303 Beam Business Administration Building, University Park, PA 16802, USA;The Pennsylvania State University, 303 Beam Business Administration Building, University Park, PA 16802, USA

  • Venue:
  • Operations Research Letters
  • Year:
  • 1991

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Abstract

In a multiple-sourcing environment, the order quantity may be split concurrently among vendors. This paper presents a technique for the estimation of parameters of the lead time distributions in such systems based on order statistics. Reductions in lead times due to multiple sourcing are also studied for the two-vendor case.