Transportation's role in the sole- versus dual-sourcing decision

John E. Tyworth, Alex Ruiz-Torres

Research output: Contribution to journalArticle

33 Scopus citations

Abstract

Current studies indicate that buyers can improve lead-time performance and reduce total inventory-system costs by splitting orders between two suppliers. These studies, however, treat transportation only implicitly as an element of the cost of placing an order. This is an important limitation, because shipping costs increase disproportionately as the size of shipment decreases and typically comprise a sizeable portion of total logistics cost. Investigates the role of transportation in the decision to procure from either one or two suppliers. A state-of-the art model was first modified to treat transportation costs explicitly and then used to conduct 54 experiments to measure the gains or losses in total logistics costs under a variety of representative conditions.

Original languageEnglish (US)
Pages (from-to)128-144
Number of pages17
JournalInternational Journal of Physical Distribution and Logistics Management
Volume30
Issue number2
DOIs
StatePublished - Mar 2000

All Science Journal Classification (ASJC) codes

  • Transportation
  • Management of Technology and Innovation

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