VENDOR SELECTION AND SUPPLY QUOTAS
DETERMINATION BY USING THE ANALYTIC
HIERARCHY PROCESS AND A NEW
MULTI-OBJECTIVE PROGRAMMING METHOD
Tunjo Peri?1, Zoran Babi?2 and Emina Resi?31Faculty of Economics & Business, University of Zagreb
2Faculty of Economics, University of Split
3School of Economics and Business, University of Sarajevo
Sarajevo, Bosnia and Herzegovina
|INDECS 15(1), 89-103, 2017
Full text available here.
Received: 31 October 2016
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.
analytic hierarchy process, multi-objective programming methods, vendor selection
JEL: C61, M11