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Vendor selection and supply quotas determination by using the analytic hierarchy process and a new multi-objective programming method

Author

Listed:
  • Tunjo Peric

    (University of Zagreb - Faculty of Economics and Business, Zagreb, Croatia)

  • Zoran Babic

    (Faculty of Economics, University of Split, Split, Croatia)

  • Emina Resic

    (School of Economics and Business, University of Sarajevo, Sarajevo, Bosnia and Herzegovina)

Abstract

In this article, we propose a new methodology for solving the vendor selection and the supply quotas determination problem. The proposed methodology combines the Analytic Hierarchy Process (AHP) for determining the coefficients of the objective functions and a new multiple objective programming method based on the cooperative game theory for vendor selection and supply quotas determination. The proposed methodology is tested on the problem of flour purchase by a company that manufactures bakery products. For vendor selection and supply quotas determination we use three complex criteria: (1) purchasing costs, (2) product quality, and (3) vendor reliability.

Suggested Citation

  • Tunjo Peric & Zoran Babic & Emina Resic, 2017. "Vendor selection and supply quotas determination by using the analytic hierarchy process and a new multi-objective programming method," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 15(1), pages 89-103.
    • Handle: RePEc:zna:indecs:v:15:y:2017:i:1:p:89-103
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    More about this item

    Keywords

    analytic hierarchy process; multi-objective programming methods; vendor selection;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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