Diversification under supply uncertainty

Anupindi, R., & Akella, R. (1993). Diversification under supply uncertainty. Management Science, 39(8), 944-963.

Type

Journal article

Intellectual base

Primary research

Year

1993

Volume

39

Issue

8

Pages

944-963

DOI registrant

Institute for Operations Research and the Management Sciences

Link

https://doi.org/10.1287/mnsc.39.8.944matched

Cited from

systems_cybernetics

Cited by

1 citation across 1 artifact.

Each citation links to the sentence it supports in the citing article.

Primes

• Substitutability
  • Substitutability is an insurance policy whose value Anupindi and Akella (1993) formalized in their analysis of dual-sourcing under supply uncertainty: diversifying across qualified, substitutable suppliers strictly reduces inventory holding costs and stockout risk relative to single sourcing when delivery is stochastic.

    This sourceFoundational dual-sourcing analysis: derives optimal order quantities across two qualified, substitutable suppliers under stochastic delivery, demonstrating strict reductions in inventory cost and stockout risk relative to single sourcing.

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