Note. An acquisition policy for a single item multi-supplier system

A study was conducted to analyze the development of an acquisition policy for a single item multi-supplier system. Optimal solution characteristics were correlated with the use of a single source promoted by just-in-time. A single item Economic Order Quantity framework which supported cost parameters and a finite long-run average capacity was utilized. The acquisition policy for a single item was required to meet constraints related to capacity and minimized costs. Some of the costs considered include total periodic purchasing, inventory carrying, ordering, inventory carrying, and supplier management costs. Results indicated that only one supplier can be selected if no capacity constraints existed. In addition, findings showed at least one supplier to supply less than its capacity.