Pros and cons of having too many v/s too few suppliers in the supply chain. Concept Introduction: Suppliers are essential components of a supply chain, in fact of any organization. The organization needs to establish a policy about the number of suppliers or, order quantities to each supplier. Optimization of the number of suppliers for an item is dependent on many factors like the item itself, the characteristics of the available suppliers, capacity and logistics available to suppliers, finance of the company etc. This is a unique decision by every company, in fact for every critical item, though the general concept is to have a few reliable supplier.

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Chapter 6.9, Problem 26P

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Interpretation:Pros and cons of having too many v/s too few suppliers in the supply chain.

Concept Introduction:Suppliers are essential components of a supply chain, in fact of any organization. The organization needs to establish a policy about the number of suppliers or, order quantities to each supplier. Optimization of the number of suppliers for an item is dependent on many factors like the item itself, the characteristics of the available suppliers, capacity and logistics available to suppliers, finance of the company etc. This is a unique decision by every company, in fact for every critical item, though the general concept is to have a few reliable supplier.

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