An evaluation of vendor selection models from a total cost of ownership perspective
Degraeve, Zeger Labro, Eva Roodhooft, Filip
Degraeve, Zeger
Labro, Eva
Roodhooft, Filip
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Publication Type
Journal article
Editor
Supervisor
Publication Year
2000-08
Journal
European Journal of Operational Research
Book
Publication Volume
125
Publication Issue
1
Publication Begin page
34
Publication End page
60
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Abstract
Many different vendor selection models have been published in the purchasing literature. However there has been no systematic approach to compare the relative efficiency of the systems. In this paper we propose to use the concept of Total Cost of Ownership as a basis for comparing vendor selection models. We illustrate the comparison with a real life data set of the purchasing problem of ball bearings at Cockerill Sambre, a Belgian multinational company in the steel industry. From a Total Cost of Ownership perspective mathematical programming models outperform rating models and multiple item models generate better results than single item models for this specific case study.
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Keywords
46 Information and Computing Sciences, 40 Engineering, 49 Mathematical Sciences