| dc.description.abstract | Supplier selection is the process by which firms identify, evaluate and contract with
supplies. The supplier selection process deploys an enormous amount of a firm’s financial
resources and plays crucial role for the success of any organization. The main objective of
supplier selection is to reduce purchase risk, maximize overall value to the purchaser, and
develop closeness and long-term relationships between buyers and suppliers. As a result,
selecting appropriate suppliers becomes one of the most important aspects of purchasing
and supply chain management for many industries selecting the right supplier has a direct
and positive impact on firm’s performance, as well as helping buying firms to achieve longterm competitive advantages and gain added value from the supply chain.
The objective is to study the effects of an order allocation procedure in a supply chain. This
supply chain consists of a company that can order products from multiple suppliers. At any
time of an order, decisions must be made by the company concerning the allocation of
products to the suppliers and the respective order quantities, so that the total purchasing cost
is minimized, while maintaining a specified service level. For this purpose, we have
developed a solution algorithm and tested it to examine its effectiveness in terms of the
service level and the company’s total purchasing cost. The final section of the paper
summarizes the conclusions of this study and suggests directions for future research. | en_US |
