Supply Chain Management for Engineers

6

Supplier Selection Methodology

6.1  Overview

In Chapters 2 through 5, we presented quantitative analysis methods to help a company better understand customer demand, plan production and manage inventory to satisfy demand, and design a distribution network to efficiently deliver products to customers. The company cannot accomplish all of these tasks alone. Rather, it has to rely on its suppliers to provide certain products and services. The process by which a company acquires raw materials, components, products, or services from suppliers is called Purchasing. Sourcing is the business process required to purchase goods and services. According to Krajewski and Ritzman (2001), the percentage of sales revenues spent on purchased materials ...