An effective method to supplier selection and order quantity allocation

Abraham Mendoza, José A. Ventura

Research output: Contribution to journalArticle

48 Scopus citations

Abstract

For those companies where the number of potential suppliers is large, the procurement decision process becomes increasingly complicated. In response to this, we present a two-phase method that effectively integrates supplier selection and order quantity allocation. Firstly, a list of potential suppliers is ranked and reduced (prescreening phase) to a manageable number by applying the Analytic Hierarchy Process (AHP). Then, based on the reduced list of suppliers, a mathematical model is used to properly allocate order quantities (order quantity allocation phase) while minimising the ordering, holding and purchasing costs per time unit subject to suppliers' capacity and quality constraints.

Original languageEnglish (US)
Pages (from-to)1-15
Number of pages15
JournalInternational Journal of Business and Systems Research
Volume2
Issue number1
DOIs
StatePublished - 2008

All Science Journal Classification (ASJC) codes

  • Management Information Systems
  • Business and International Management
  • Strategy and Management

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