An integrated approach for supplier selection and purchasing decisions

Purpose – The paper seeks to provide academic researchers and practitioners with a better understanding about purchasing strategies through an integrated approach to supplier selection and purchasing decisions.Design/methodology/approach – This paper views supplier selection as a multi‐criteria problem. Through the analytical hierarchy process (AHP), in consideration of both quantitative and qualitative criteria, a set of candidate suppliers is identified. A multi‐objective linear programming (MOLP) model, with multiple objectives and a set of system constraints, is then formulated and solved to allocate the optimum order quantities to the candidate suppliers.Findings – The paper provides tradeoffs among different objectives, which are more consistent with the complexity and nature of the real‐world decision‐making environment. It also offers better information and solutions supporting effective purchasing decisions.Research limitations/implications – The main concept of the proposed approach can be appli...

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