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A decision method for supplier selection in multi-service outsourcing

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  • Feng, Bo
  • Fan, Zhi-Ping
  • Li, Yanzhi

Abstract

Although supplier selection in multi-service outsourcing is a very important decision problem, research concerning this issue is still relatively scarce. This paper proposes a decision method for selecting a pool of suppliers for the provision of different service process/product elements. It pioneers the use of collaborative utility between partner firms for supplier selection. A multi-objective model is built to select desired suppliers. This model is proved to be NP-hard, so we develop a multi-objective algorithm based on Tabu search for solving it. We then use an example to show the applicability of the proposed model and algorithm. Extensive computational experiments are also conducted to further test the performance of the proposed algorithm.

Suggested Citation

  • Feng, Bo & Fan, Zhi-Ping & Li, Yanzhi, 2011. "A decision method for supplier selection in multi-service outsourcing," International Journal of Production Economics, Elsevier, vol. 132(2), pages 240-250, August.
    • Handle: RePEc:eee:proeco:v:132:y:2011:i:2:p:240-250
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    2. Stefan Kurpjuweit & Stephan M. Wagner & Thomas Y. Choi, 2021. "Selecting Startups as Suppliers: A Typology of Supplier Selection Archetypes," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(3), pages 25-49, July.
    3. Zhou, Dan & Yan, Tingting & Zhao, Lilong & Guo, Jingjing, 2020. "Performance implications of servitization: Does a Manufacturer's service supply network matter?," International Journal of Production Economics, Elsevier, vol. 219(C), pages 31-42.
    4. Aly Owida & P.J. Byrne & Cathal Heavey & Paul Blake & Khaled S. El-Kilany, 2016. "A simulation based continuous improvement approach for manufacturing based field repair service contracting," International Journal of Production Research, Taylor & Francis Journals, vol. 54(21), pages 6458-6477, November.
    5. Pournader, Mehrdokht & Kach, Andrew & Fahimnia, Behnam & Sarkis, Joseph, 2019. "Outsourcing performance quality assessment using data envelopment analytics," International Journal of Production Economics, Elsevier, vol. 207(C), pages 173-182.
    6. Galo, Nadya Regina & Calache, Lucas Daniel Del Rosso & Carpinetti, Luiz Cesar Ribeiro, 2018. "A group decision approach for supplier categorization based on hesitant fuzzy and ELECTRE TRI," International Journal of Production Economics, Elsevier, vol. 202(C), pages 182-196.
    7. Pınar Kaya Samut, 2017. "Integrated FANP-f-MIGP model for supplier selection in the renewable energy sector," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 18(3), pages 427-450, May.
    8. Colicev, Anatoli & De Giovanni, Pietro & Vinzi, Vincenzo Esposito, 2016. "An empirical investigation of the antecedents of partnering capability," International Journal of Production Economics, Elsevier, vol. 178(C), pages 144-153.
    9. Yazdi, Amir Karbassi & Wanke, Peter Fernandes & Hanne, Thomas & Abdi, Farshid & Sarfaraz, Amir Homayoun, 2022. "Supplier selection in the oil & gas industry: A comprehensive approach for Multi-Criteria Decision Analysis," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    10. Pham Thi Hoai & Hoai An Le Thi & Nguyen Canh Nam, 2021. "Half-open polyblock for the representation of the search region in multiobjective optimization problems: its application and computational aspects," 4OR, Springer, vol. 19(1), pages 41-70, March.
    11. Zhen, Lu, 2014. "A three-stage optimization model for production and outsourcing under China’s export-oriented tax policies," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 69(C), pages 1-20.
    12. R. Sivaprakasam & V. Selladurai & P. Sasikumar, 2015. "Implementation of interpretive structural modelling methodology as a strategic decision making tool in a Green Supply Chain Context," Annals of Operations Research, Springer, vol. 233(1), pages 423-448, October.
    13. Alireza Shahrasbi & Mehdi Shamizanjani & M. H. Alavidoost & Babak Akhgar, 2017. "An Aggregated Fuzzy Model for the Selection of a Managed Security Service Provider," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(03), pages 625-684, May.
    14. 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.
    15. Hamzeh Amin-Tahmasbi & Sina Sadafi & Banu Y. Ekren & Vikas Kumar, 2023. "A multi-objective integrated optimisation model for facility location and order allocation problem in a two-level supply chain network," Annals of Operations Research, Springer, vol. 324(1), pages 993-1022, May.
    16. Ali Salmasnia & Hamid Daliri & Ali Ghorbanian & Hadi Mokhtari, 2018. "A statistical analysis and simulation based approach to an uncertain supplier selection problem with discount option," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 9(6), pages 1250-1259, December.
    17. Ekici, Ali, 2013. "An improved model for supplier selection under capacity constraint and multiple criteria," International Journal of Production Economics, Elsevier, vol. 141(2), pages 574-581.

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