Supplier selection problem revisited from the perspective of product configuration

Abstract

Collaboration with suppliers is essential for developing and producing a competitive product and it begins with selecting the right suppliers. This article addresses the supplier selection problem from the perspective of product configuration. We discuss first how the conventional decision models of supplier selection should be extended, considering the fact that supplier configuration requires supplier selection for each subsystem of a product. We then highlight the need to consider interrelationships between suppliers, namely, supplier–supplier relationships during the selection process of the combination of suppliers. Finally, we introduce the supplier configuration graph in order to provide a clear picture of the problem. Discussions are provided along with an example of a smartphone configuration.

Keywords:

• supply chain management
• supplier selection
• product configuration
• supplier configuration
• multiple criteria decision analysis