Title: An analytical approach for evaluating and selecting vendors with interdependent performance in a supply chain

Authors: Layek Abdel-Malek, Nathapol Areeratchakul

Addresses: Department of Industrial and Manufacturing Engineering, New Jersey Institute of Technology, Newark, NJ 07102, USA. ' Department of Industrial and Manufacturing Engineering, New Jersey Institute of Technology, Newark, NJ 07102, USA

Abstract: In this paper, we develop an analytically based approach for the selection of vendors in a supply chain. In the selection process, the approach considers salient performance attributes necessary for a reliable chain. Additionally, it takes into account the effect of the vendors| interaction costs stemming from conflicts of interest among them. Most important, it compares the pool of available suppliers, assigns weights to each attribute depending on its importance and ranks vendors accordingly. Subsequently, an algorithm is used to select the optimum set from these suppliers. The paper describes the steps of the developed approach and also provides a numerical example illustrating its application.

Keywords: supply chain management; vendor selection; performance measurement.

DOI: 10.1504/IJISM.2004.004598

International Journal of Integrated Supply Management, 2004 Vol.1 No.1, pp.64 - 78

Published online: 26 May 2004 *

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