Multiobjective vendor allocation in multiechelon inventory systems: a spreadsheet model

  • S W Lam
  • L C Tang
Theoretical Paper

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.

Keywords

vendor selection problem suppliers' management multiobjective linear programming procurement multiechelon inventory systems 

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Copyright information

© Palgrave Macmillan Ltd 2005

Authors and Affiliations

  • S W Lam
    • 1
  • L C Tang
    • 1
  1. 1.Department of Industrial and Systems EngineeringNational University of SingaporeSingaporeSingapore

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