The optimization model of the vendor selection for the joint procurement from a total cost of ownership perspective
Abstract: This paper is an
attempt to establish the mathematical programming model of the vendor selection
for the joint procurement from a total cost of ownership perspective.
Design/methodology/approach: Fuzzy genetic algorithm is employed to solve
the model, and the data set of the ball bearings purchasing problem is
illustrated as a numerical analysis.
Findings: According to the results, it can be seen that the performance
of the optimization model is pretty good and can reduce the total costs of the
procurement.
Originality/value: The contribution of this paper is threefold. First, a
literature review and classification of the published vendor selection models
is shown in this paper. Second, a mathematical programming model of the vendor
selection for the joint procurement from a total cost of ownership perspective
is established. Third, an empirical study is displayed to illustrate the
application of the proposed model to evaluate and identify the best vendors for
ball bearing procurement, and the results show that it could reduce the total
costs as much as twenty percent after the optimization.
Author: Fubin Pan
Journal Code: jptindustrigg150097
