A PETRI NET BASED DECISION SUPPORT SYSTEM FOR PURCHASING MANAGEMENT IN SUPPLY CHAINS

Abstract The paper proposes a Decision Support System (DSS) to address the strategic issue of purchasing management in supply chains based on a transaction cost and purchasing price model employing probabilistic tools. The DSS is implemented in a novel high level Petri nets formalism, called Flow Coloured Petri Nets (FCPN). Several simulation tests of the FCPN model of the proposed DSS demonstrate the ability of the DSS in helping the buyer to determine the optimal number and the type of suppliers to involve in a transaction for a new product or service.