An integrated approach for the electronic contract manufacturer selection problem

In the global competitive environment, lead companies have to outsource their manufacturing to electronic contract manufacturers (ECM) in order to reduce operational cost and capture higher profit. Thus, the process of selecting contract manufacturers to be strategic partners is important for these companies. For this reason, this paper proposes an integrated approach for the electronic contract manufacturer selection problem, combining the voting method and the goal programming (GP) model to take into account quantitative factors involved in the selection process, which is applied to a real-world ECM selection problem encountered by a leading provider of complete broadband access solutions. Results of the case study indicate that the voting method can acquire the rating information quickly from manufacturing managers based on suitable evaluating criteria. The rating information simultaneously incorporates ECMs' performance scores as a weight for each ECM. A production planner can easily employ the GP model and ECMs’ weight information to effectively assign demand quantities to ECMs. Therefore, the integrated approach is a practical and useful tool for solving the contract manufacturer selection problem.