A HIERARCHICAL VENDOR SELECTION OPTIMIZATION TECHNIQUE FOR MULTIPLE SOURCING

Mariagrazia Dotoli, Marco Falagario

Abstract

The paper addresses a crucial objective of the strategic function of purchasing in supply chains, i.e., vendor rating, proposing a hierarchical model for supplier business intelligence. A three-level optimization process for supplier selection in a multiple sourcing strategy context is proposed. First, the Data Envelopment Analysis, the most widespread method for supplier selection, is used to evaluate the efficiency of suppliers. Second, the well-known Analytic Hierarchy Process is applied to rank the efficient suppliers given by the previous step. Third, a linear programming problem is solved to find the quantities to order from each efficient supplier. We show the model effectiveness on a simulated case study of a C class component.

References

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Paper Citation


in Harvard Style

Dotoli M. and Falagario M. (2010). A HIERARCHICAL VENDOR SELECTION OPTIMIZATION TECHNIQUE FOR MULTIPLE SOURCING . In Proceedings of the International Conference on Knowledge Management and Information Sharing - Volume 1: KMIS, (IC3K 2010) ISBN 978-989-8425-30-0, pages 195-200. DOI: 10.5220/0003088801950200


in Bibtex Style

@conference{kmis10,
author={Mariagrazia Dotoli and Marco Falagario},
title={A HIERARCHICAL VENDOR SELECTION OPTIMIZATION TECHNIQUE FOR MULTIPLE SOURCING},
booktitle={Proceedings of the International Conference on Knowledge Management and Information Sharing - Volume 1: KMIS, (IC3K 2010)},
year={2010},
pages={195-200},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0003088801950200},
isbn={978-989-8425-30-0},
}


in EndNote Style

TY - CONF
JO - Proceedings of the International Conference on Knowledge Management and Information Sharing - Volume 1: KMIS, (IC3K 2010)
TI - A HIERARCHICAL VENDOR SELECTION OPTIMIZATION TECHNIQUE FOR MULTIPLE SOURCING
SN - 978-989-8425-30-0
AU - Dotoli M.
AU - Falagario M.
PY - 2010
SP - 195
EP - 200
DO - 10.5220/0003088801950200