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Multisourcing suppliers selection in service outsourcing

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  • B Feng

    (1] South China University of Technology, Gouzhou, China[2] City University of Hong Kong, Hong Kong)

Abstract

Multisourcing suppliers selection in service outsourcing involves selecting a supplier portfolio with a reasonable number of suppliers and better performance to cover aspiration levels of criteria. It is a specific weighted matching problem with new challenges. This paper proposes a decision method for solving this problem. In the proposed method, different formats of preference information, including numerical values, interval numbers and linguistic variables, are used to express alternative ratings. The technique for order preference by similarity to ideal solution is extended to aggregate the three formats of preference information. A bi-objective 0–1 linear programming model using the aggregated information is built to select a desired supplier portfolio, in which the objectives of minimization of suppliers number and maximization of supplier performance are involved. To solve this model, we transform it into an equivalent, and then an exact multi-objective branch-and-bound algorithm is developed to obtain Pareto-optimal solutions. In addition, a real case of an insurance company is used to illustrate the applicability of the proposed method.

Suggested Citation

  • B Feng, 2012. "Multisourcing suppliers selection in service outsourcing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 63(5), pages 582-596, May.
    • Handle: RePEc:pal:jorsoc:v:63:y:2012:i:5:p:582-596
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    Citations

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    Cited by:

    1. Kellner, Florian & Lienland, Bernhard & Utz, Sebastian, 2019. "An a posteriori decision support methodology for solving the multi-criteria supplier selection problem," European Journal of Operational Research, Elsevier, vol. 272(2), pages 505-522.
    2. Oksana Loginova & Niladri B. Syam, 2020. "Sourcing Co-Created Products: Should Your Suppliers Collaborate on Cost Reductions?," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 56(2), pages 329-355, March.
    3. Dinah Cohen-Vernik & Oksana Loginova & Niladri B. Syam, 2016. "Sourcing Co-Created Products: Should your Suppliers Collaborate?," Working Papers 1618, Department of Economics, University of Missouri, revised 14 Aug 2018.
    4. Guo, Cong & Li, Xueping, 2014. "A multi-echelon inventory system with supplier selection and order allocation under stochastic demand," International Journal of Production Economics, Elsevier, vol. 151(C), pages 37-47.
    5. Xiaoyan Xu & Yanan Ji & Yiwen Bian & Yanhong Sun, 2017. "Service outsourcing under co-opetition and information asymmetry," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(6), pages 666-677, June.

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