A Framework for Analyzing Sources of Variance in the Supplier -Buyer Relationship: Determining the Contribution of Buyer Planning and Supplier Performance to Total Variance

Abstract

This paper presents a theoretical framework for diagnosing areas of variance concerning inventory availability in the supplier-buyer relationship. A multi-level approach is used with each level of analysis introducing greater detail. The framework provides a means of separating variances caused by supplier performance from those caused by buyer planning and determining the extent to which supplier performance must compensate for failures in planning.