Title: Literature review of current practices of supplier's assessment and valuation of decisions regarding underperforming suppliers

Authors: Clint Saidy; Claudia Pinna; Ziamara Wilson; Liudas Panavas; Ramy Harik; Abdel-Moez Bayoumi

Addresses: Department of Mechanical Engineering, College of Engineering and Computing, University of South Carolina, Columbia, South Carolina, USA ' Department of Management, Economics and Industrial Engineering, Politecnico di Milano, Engineering Piazza Leonardo da Vinci, 20133 Milan, Italy ' Department of Mechanical Engineering, College of Engineering and Computing, University of South Carolina, Columbia, South Carolina, USA ' Department of Mechanical Engineering, College of Engineering and Computing, University of South Carolina, Columbia, South Carolina, USA ' Department of Mechanical Engineering, College of Engineering and Computing, University of South Carolina, Columbia, South Carolina, USA ' Department of Mechanical Engineering, College of Engineering and Computing, University of South Carolina, Columbia, South Carolina, USA

Abstract: This article is a literature review that investigates current practices of supplier's delivery assessment and the valuation of management's decisions regarding underperforming suppliers. The development of this article is intended to aid as literary basis for future development of a comprehensive performance index and a cost function model. Derived from current literature, an underperforming supplier faces three potential outcomes: 1) switching the supplier; 2) increasing collaboration; 3) maintaining the status quo. The decision vis-à-vis failing suppliers is based on an analytical hierarchy process (AHP) since the situation at hand is a multi-criteria decision-making situation. This process enables purchasing firms to assess their suppliers and take proactive measures against underachieving suppliers, which in turn also decreases the risk of supply chain disruption.

Keywords: supplier; delivery time; quality; switching costs; collaborative planning; forecast; replenishment; analytical hierarchy process; AHP.

DOI: 10.1504/IJPLM.2018.094719

International Journal of Product Lifecycle Management, 2018 Vol.11 No.3, pp.245 - 267

Received: 25 Aug 2017
Accepted: 18 May 2018

Published online: 06 Sep 2018 *

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