oa Journal of Transport and Supply Chain Management - A case on vendor selection methodology : an integrated approach

Volume 3, Issue 1
  • ISSN : 2310-8789
  • E-ISSN: 1995-5235



Vendor selection methodology is a highly researched area in supply chain management literature and a very significant decision taken by supply chain managers due to technological advances in the manufacturing process. Such research has two basic dimensions: one is related to the identification of variables affecting the performance of the vendors and the other deals with the methodology to be applied. Most of the research conducted in this area deal with the upfront selection of vendors. However, it is very common to have a list of dedicated vendors due to the development of sophisticated production technologies like just in time (JIT), a lean or agile manufacturing process where continuous flow of materials is a requirement. This paper addresses the issue of selecting the optimal vendor from the internal database of a company. Factor analysis, analytical hierarchy process and regression analysis is used in an integrated way to supplement the vendor selection process. The methodology presented here is simply a proposal where every possible room for adjustment is available.

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