Vendor Selection and Supply Quotas Determination by Using the Analytic Hierarchy Process and a New Multi-objective Programming Method

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 meth...

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Bibliographic Details
Published in:Interdisciplinary description of complex systems Vol. 15; no. 1; pp. 89 - 103
Main Authors: Peric, Tunjo, Babic, Zoran, Resic, Emina
Format: Journal Article
Language:English
Published: Zagreb Croatian Interdisciplinary Society 01.01.2017
Subjects:
Analytic hierarchy process
Bakery products
Game theory
Goal programming
Mathematical analysis
Mathematical programming
Methodology
multi-objective programming methods
Multiple objective analysis
Quotas
vendor selection
ISSN:1334-4684, 1334-4676
Online Access:Get full text
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Summary: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.
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ISSN:1334-4684
1334-4676
DOI:10.7906/indecs.15.1.7