IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v132y2011i2p240-250.html
   My bibliography  Save this article

A decision method for supplier selection in multi-service outsourcing

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527311001897
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Talluri, Srinivas & Narasimhan, Ram, 2003. "Vendor evaluation with performance variability: A max-min approach," European Journal of Operational Research, Elsevier, vol. 146(3), pages 543-552, May.
    2. Guo, Pengfei & Song, Jing-Sheng & Wang, Yulan, 2010. "Outsourcing structures and information flow in a three-tier supply chain," International Journal of Production Economics, Elsevier, vol. 128(1), pages 175-187, November.
    3. Antelo, Manel & Bru, Lluis, 2010. "Outsourcing or restructuring: The dynamic choice," International Journal of Production Economics, Elsevier, vol. 123(1), pages 1-7, January.
    4. Feng, Bo & Fan, Zhi-Ping & Ma, Jian, 2010. "A method for partner selection of codevelopment alliances using individual and collaborative utilities," International Journal of Production Economics, Elsevier, vol. 124(1), pages 159-170, March.
    5. Feng, Bo & Jiang, Zhong-Zhong & Fan, Zhi-Ping & Fu, Na, 2010. "A method for member selection of cross-functional teams using the individual and collaborative performances," European Journal of Operational Research, Elsevier, vol. 203(3), pages 652-661, June.
    6. Robin Cowan & Nicolas Jonard & Jean-Benoit Zimmermann, 2007. "Bilateral Collaboration and the Emergence of Innovation Networks," Management Science, INFORMS, vol. 53(7), pages 1051-1067, July.
    7. Bustinza, O.F. & Arias-Aranda, D. & Gutierrez-Gutierrez, L., 2010. "Outsourcing, competitive capabilities and performance: an empirical study in service firms," International Journal of Production Economics, Elsevier, vol. 126(2), pages 276-288, August.
    8. Ho, William & Xu, Xiaowei & Dey, Prasanta K., 2010. "Multi-criteria decision making approaches for supplier evaluation and selection: A literature review," European Journal of Operational Research, Elsevier, vol. 202(1), pages 16-24, April.
    9. McCarthy, Ian & Anagnostou, Angela, 2004. "The impact of outsourcing on the transaction costs and boundaries of manufacturing," International Journal of Production Economics, Elsevier, vol. 88(1), pages 61-71, March.
    10. Belfares, Lamia & Klibi, Walid & Lo, Nassirou & Guitouni, Adel, 2007. "Multi-objectives Tabu Search based algorithm for progressive resource allocation," European Journal of Operational Research, Elsevier, vol. 177(3), pages 1779-1799, March.
    11. Melissa A. Schilling & Corey C. Phelps, 2007. "Interfirm Collaboration Networks: The Impact of Large-Scale Network Structure on Firm Innovation," Management Science, INFORMS, vol. 53(7), pages 1113-1126, July.
    12. Büyüközkan, Gülçin & Feyzioglu, Orhan & Sakir Ersoy, Mehmet, 2009. "Evaluation of 4PL operating models: A decision making approach based on 2-additive Choquet integral," International Journal of Production Economics, Elsevier, vol. 121(1), pages 112-120, September.
    13. Gad Allon & Awi Federgruen, 2009. "Competition in Service Industries with Segmented Markets," Management Science, INFORMS, vol. 55(4), pages 619-634, April.
    14. Nordin, Fredrik, 2008. "Linkages between service sourcing decisions and competitive advantage: A review, propositions, and illustrating cases," International Journal of Production Economics, Elsevier, vol. 114(1), pages 40-55, July.
    15. Büyüközkan, Gülçin & Feyzioglu, Orhan & Nebol, Erdal, 2008. "Selection of the strategic alliance partner in logistics value chain," International Journal of Production Economics, Elsevier, vol. 113(1), pages 148-158, May.
    16. Qi, Xiangtong, 2011. "Outsourcing and production scheduling for a two-stage flow shop," International Journal of Production Economics, Elsevier, vol. 129(1), pages 43-50, January.
    17. Gao, Zhen & Tang, Lixin, 2003. "A multi-objective model for purchasing of bulk raw materials of a large-scale integrated steel plant," International Journal of Production Economics, Elsevier, vol. 83(3), pages 325-334, March.
    18. Ghodsypour, S. H. & O'Brien, C., 2001. "The total cost of logistics in supplier selection, under conditions of multiple sourcing, multiple criteria and capacity constraint," International Journal of Production Economics, Elsevier, vol. 73(1), pages 15-27, August.
    19. Ng, Wan Lung, 2008. "An efficient and simple model for multiple criteria supplier selection problem," European Journal of Operational Research, Elsevier, vol. 186(3), pages 1059-1067, May.
    20. Talluri, Srinivas, 2002. "A buyer-seller game model for selection and negotiation of purchasing bids," European Journal of Operational Research, Elsevier, vol. 143(1), pages 171-180, November.
    21. Jaeggi, D.M. & Parks, G.T. & Kipouros, T. & Clarkson, P.J., 2008. "The development of a multi-objective Tabu Search algorithm for continuous optimisation problems," European Journal of Operational Research, Elsevier, vol. 185(3), pages 1192-1212, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gunasekaran, Angappa & Irani, Zahir & Choy, King-Lun & Filippi, Lionel & Papadopoulos, Thanos, 2015. "Performance measures and metrics in outsourcing decisions: A review for research and applications," International Journal of Production Economics, Elsevier, vol. 161(C), pages 153-166.
    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. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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.
    9. 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.
    10. Yahel Giat, 2024. "Stock Levels and Repair Sourcing in a Periodic Review Exchangeable Item Repair System," Logistics, MDPI, vol. 8(2), pages 1-19, March.
    11. 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.
    12. 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.
    13. 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).
    14. 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.
    15. 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.
    16. 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.
    17. 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.
    18. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jui-Fang Chang & Chao-Jung Lai & Chia-Nan Wang & Ming-Hsien Hsueh & Van Thanh Nguyen, 2021. "Fuzzy Optimization Model for Decision-Making in Supply Chain Management," Mathematics, MDPI, vol. 9(4), pages 1-16, February.
    2. 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.
    3. Ho, William & Xu, Xiaowei & Dey, Prasanta K., 2010. "Multi-criteria decision making approaches for supplier evaluation and selection: A literature review," European Journal of Operational Research, Elsevier, vol. 202(1), pages 16-24, April.
    4. Yu, Yugang & Hong, Zhaofu & Zhang, Linda L. & Liang, Liang & Chu, Chengbin, 2013. "Optimal selection of retailers for a manufacturing vendor in a vendor managed inventory system," European Journal of Operational Research, Elsevier, vol. 225(2), pages 273-284.
    5. Lin, Rong-Ho, 2012. "An integrated model for supplier selection under a fuzzy situation," International Journal of Production Economics, Elsevier, vol. 138(1), pages 55-61.
    6. Ali Ekici & Baṣak Altan & Okan Örsan Özener, 2016. "Pricing decisions in a strategic single retailer/dual suppliers setting under order size constraints," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 1887-1898, April.
    7. 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.
    8. Guodong Yu & Li Zhang & Huiping Sun, 2018. "A Method for Partner Selection of Supply Chain Using Interval-Valued Fuzzy Sets — Fuzzy Choquet Integral and Improved Dempster–Shafer Theory," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(06), pages 1777-1804, November.
    9. Zeki Ayağ & Funda Samanlioglu, 2016. "An intelligent approach to supplier evaluation in automotive sector," Journal of Intelligent Manufacturing, Springer, vol. 27(4), pages 889-903, August.
    10. Kuo, R.J. & Pai, C.M. & Lin, R.H. & Chu, H.C., 2015. "The integration of association rule mining and artificial immune network for supplier selection and order quantity allocation," Applied Mathematics and Computation, Elsevier, vol. 250(C), pages 958-972.
    11. 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.
    12. Bustinza, O.F. & Arias-Aranda, D. & Gutierrez-Gutierrez, L., 2010. "Outsourcing, competitive capabilities and performance: an empirical study in service firms," International Journal of Production Economics, Elsevier, vol. 126(2), pages 276-288, August.
    13. Longlong Ye & Guang Song & Shaohua Song, 2024. "Enhancing Economic, Resilient, and Sustainable Outcomes Through Supplier Selection and Order Allocation in the Food Manufacturing Industry: A Hybrid Delphi-FAHP-FMOP Method," Mathematics, MDPI, vol. 12(21), pages 1-25, October.
    14. Jianxiong Zhang & Lin Feng & Wansheng Tang, 2014. "Optimal Contract Design of Supplier-Led Outsourcing Based on Pontryagin Maximum Principle," Journal of Optimization Theory and Applications, Springer, vol. 161(2), pages 592-607, May.
    15. Scott, James & Ho, William & Dey, Prasanta K. & Talluri, Srinivas, 2015. "A decision support system for supplier selection and order allocation in stochastic, multi-stakeholder and multi-criteria environments," International Journal of Production Economics, Elsevier, vol. 166(C), pages 226-237.
    16. Ventura, José A. & Bunn, Kevin A. & Venegas, Bárbara B. & Duan, Lisha, 2021. "A coordination mechanism for supplier selection and order quantity allocation with price-sensitive demand and finite production rates," International Journal of Production Economics, Elsevier, vol. 233(C).
    17. Dobos, Imre & Vörösmarty, Gyöngyi, 2019. "Inventory-related costs in green supplier selection problems with Data Envelopment Analysis (DEA)," International Journal of Production Economics, Elsevier, vol. 209(C), pages 374-380.
    18. Gupeng Zhang & Xiao Wang & Hongbo Duan, 2020. "Obscure but important: examining the indirect effects of alliance networks in exploratory and exploitative innovation paradigms," Scientometrics, Springer;Akadémiai Kiadó, vol. 124(3), pages 1745-1764, September.
    19. 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.
    20. Nassim Mrabti & Nadia Hamani & Laurent Delahoche, 2022. "A Comprehensive Literature Review on Sustainable Horizontal Collaboration," Sustainability, MDPI, vol. 14(18), pages 1-38, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:132:y:2011:i:2:p:240-250. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.