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Robust supply base management: Determining the optimal number of suppliers utilized by contractors

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  • Nam, Seong-Hyun
  • Vitton, John
  • Kurata, Hisashi

Abstract

The 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.

Suggested Citation

  • Nam, Seong-Hyun & Vitton, John & Kurata, Hisashi, 2011. "Robust supply base management: Determining the optimal number of suppliers utilized by contractors," International Journal of Production Economics, Elsevier, vol. 134(2), pages 333-343, December.
    • Handle: RePEc:eee:proeco:v:134:y:2011:i:2:p:333-343
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    References listed on IDEAS

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    Cited by:

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    2. Patrucco, Andrea S. & Moretto, Antonella & Knight, Louise, 2021. "Does relationship control hinder relationship commitment? The role of supplier performance measurement systems in construction infrastructure projects," International Journal of Production Economics, Elsevier, vol. 233(C).
    3. Pushpesh Pant & Hari Vishal & S. P. Sarmah, 2020. "Does Disruptive Event Affect Supply Base Size: Evidence from an Emerging Economy," Foreign Trade Review, , vol. 55(4), pages 496-510, November.
    4. Peng, Yang & Yan, Xiaoming & Jiang, Yujie & Ji, Min & Cheng, T.C.E., 2021. "Competition and coordination for supply chain networks with random yields," International Journal of Production Economics, Elsevier, vol. 239(C).
    5. Hu, Xiaojian & Wang, Guanxiong & Li, Xiaozheng & Zhang, Yue & Feng, Shuai & Yang, Aifeng, 2018. "Joint decision model of supplier selection and order allocation for the mass customization of logistics services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 120(C), pages 76-95.

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