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Multiobjective vendor allocation in multiechelon inventory systems: a spreadsheet model

Author

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  • S W Lam

    (National University of Singapore)

  • L C Tang

    (National University of Singapore)

Abstract

The vendor selection problem (VSP) is a critical element of the numerous managerial decisions in the consideration of both outsourcing and integrated supply chain management. Many papers in the literature have dealt with VSPs from a multicriteria perspective, but few have looked into the implications of such decisions in a multiechelon supply chain with the explicit consideration of multiple time-phased demands. A new integrated supply chain model is proposed for a multiechelon supply chain. This model takes into account the usual cost objective and other important criteria in a multiechelon supply chain ranging from the most upstream suppliers' quality to end customers' satisfaction level through a large-scale multiobjective linear programme (MOLP). Furthermore, various Pareto optimal solutions can be graphically presented to facilitate decision making and negotiations with existing and potential suppliers.

Suggested Citation

  • S W Lam & L C Tang, 2006. "Multiobjective vendor allocation in multiechelon inventory systems: a spreadsheet model," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(5), pages 561-578, May.
    • Handle: RePEc:pal:jorsoc:v:57:y:2006:i:5:d:10.1057_palgrave.jors.2602027
    DOI: 10.1057/palgrave.jors.2602027
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    References listed on IDEAS

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