Abstract
As an improvement to a series of expected value approach models, this study presents a supplier portfolio decision model, rather than a number of suppliers decision model. The model assesses risks as costs, considers types of heterogeneity in a procurement process and links the assessed terms in the programming model with accounting concepts. The model is then confirmed by using a procurement decision case with real data. The analysis has several implications for modelling, application and practice. In the light of the counterexamples shown, some thoughts pertaining to procurement decisions in supply management are reconsidered.
Original language | English |
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Pages (from-to) | 539-553 |
Number of pages | 15 |
Journal | Journal of the Operational Research Society |
Volume | 66 |
Issue number | 4 |
DOIs | |
Publication status | Published - Apr 12 2015 |
Externally published | Yes |
Keywords
- accounting
- optimization
- purchase
- risk
ASJC Scopus subject areas
- Management Science and Operations Research
- Management Information Systems
- Marketing
- Strategy and Management