Work

Temporal distance in dual sourcing: A behavioural investigation

Year: 2024

Type: article

Abstract: We explored the influence of temporal distances on order allocation between a low‐cost, less reliable supplier and a reliable, high‐cost supplier. We posited that a far temporal distance increases the preference for the unreliable, low‐cost supplier. We conducted a vignette‐based experiment where participants placed orders between the suppliers with different reliability and cost levels. Our experiment showed that a longer lead time led to larger orders for the low‐cost unreliable supplier. Our insights help explain how temporal distances inherent in supply chains can elicit differing evaluations of suppliers, altering ordering decisions.

Source: Managerial and Decision Economics

DOI: 10.1002/mde.4353

Authors: Alain Balaguer‐Mercado, Samuel N. Kirshner, Chung‐Li Tseng

Institution: UNSW Sydney

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,970

Funder: University of New South Wales