Collaborative dynamic decision making: a case study from B2B supplier selection

The problem of supplier selection can be easily modeled as a multiple-criteria decision making (MCDM) problem: businesses express their preferences with respect to suppliers, which can then be ranked and selected. This approach has two major pitfalls: first, it does not consider a dynamic scenario, in which suppliers and their ratings are constantly changing; second, it only addressed the problem from the point of view of a single business, and cannot be easily applied when considering more than one business. To overcome these problems, we introduce a method for supplier selection that builds upon the dynamic MCDM framework of Campanella and Ribeiro [1] and, by means of a linear programming model, can be used in the case of multiple collaborating businesses plan- ning their next batch of orders together.
Fundação para a Ciência e a Tecnologia, Portugal, under contract CONT DOUT/49/UNINOVA/0/5902/1/2006