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Modelling information sharing to improve just-in-time purchasing vendor evaluation

Author

Listed:
  • James T. Ding
  • Rohana J. Karunamuni

Abstract

Vendor evaluation is an important step for a manufacturer's purchasing operation. For firms adopting Just-In-Time Purchasing (JITP) strategy, vendor evaluation is critical in quality improvement and cost reduction. In this paper, we examine the value of information sharing in improving vendor evaluation. We build stochastic models for three different scenarios of information sharing to illustrate the advantages for JITP vendor evaluation under the Assemble-To-Order (ATO) manufacturing environment. We show how integrating statistical and analytical tools with Enterprise Resource Planning (ERP) packages can help achieve efficient and effective managerial decision-making in JITP.

Suggested Citation

  • James T. Ding & Rohana J. Karunamuni, 2008. "Modelling information sharing to improve just-in-time purchasing vendor evaluation," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 13(1), pages 30-54.
    • Handle: RePEc:ids:ijmtma:v:13:y:2008:i:1:p:30-54
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