An effective supplier selection method for constructing a competitive supply-relationship

Gye Hang Hong, Sang Chan Park, Dong Sik Jang, Hyung Min Rho

Research output: Contribution to journalArticle

144 Citations (Scopus)

Abstract

We propose an effective supplier selection method to maintain a continuous supply-relationship with suppliers. Costs have been sharply increasing and profit decreasing as the global competition among companies has increased and customer demands have diversified in the current business environment. Many other functions are now outsourced globally to strengthen competition. As a result, one of the issues is how to select good suppliers which can maintain a continuous supply-relationship. We suggest a mathematical programming model that considers the change in suppliers' supply capabilities and customer needs over a period in time. We design a model which not only maximizes revenue but also satisfies customer needs. The suggested model is applied to supplier selection and management of the agriculture industry in Korea.

Original languageEnglish
Pages (from-to)629-639
Number of pages11
JournalExpert Systems with Applications
Volume28
Issue number4
DOIs
Publication statusPublished - 2005 May 1

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Industry
Mathematical programming
Agriculture
Profitability
Costs

Keywords

  • Customer demand
  • Data mining
  • Mixed-integer programming
  • Supply selection
  • Supply-relationship management

ASJC Scopus subject areas

  • Artificial Intelligence
  • Computer Science Applications

Cite this

An effective supplier selection method for constructing a competitive supply-relationship. / Hong, Gye Hang; Park, Sang Chan; Jang, Dong Sik; Rho, Hyung Min.

In: Expert Systems with Applications, Vol. 28, No. 4, 01.05.2005, p. 629-639.

Research output: Contribution to journalArticle

Hong, Gye Hang ; Park, Sang Chan ; Jang, Dong Sik ; Rho, Hyung Min. / An effective supplier selection method for constructing a competitive supply-relationship. In: Expert Systems with Applications. 2005 ; Vol. 28, No. 4. pp. 629-639.
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