An analysis of the supplier selection process

An analysis of the supplier selection process Customers select suppliers based on the relative importance of different attributes such as quality, price, flexibility, and delivery performance. This study examines the difference between managers' rating of the perceived importance of different supplier attributes and their actual choice of suppliers in an experimental setting. We use two methods: a Likert scale set of questions, to determine the importance of supplier attributes; and a discrete choice analysis (DCA) experiment, to examine the choice of suppliers. The results indicate that although managers say that quality is the most important attribute for a supplier, they actually choose suppliers based largely on cost and delivery performance. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Omega Elsevier

An analysis of the supplier selection process

Omega, Volume 26 (6) – Dec 1, 1998

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Publisher
Elsevier
Copyright
Copyright © 1998 Elsevier Science Ltd
ISSN
0305-0483
eISSN
1873-5274
DOI
10.1016/S0305-0483(98)00023-1
Publisher site
See Article on Publisher Site

Abstract

Customers select suppliers based on the relative importance of different attributes such as quality, price, flexibility, and delivery performance. This study examines the difference between managers' rating of the perceived importance of different supplier attributes and their actual choice of suppliers in an experimental setting. We use two methods: a Likert scale set of questions, to determine the importance of supplier attributes; and a discrete choice analysis (DCA) experiment, to examine the choice of suppliers. The results indicate that although managers say that quality is the most important attribute for a supplier, they actually choose suppliers based largely on cost and delivery performance.

Journal

OmegaElsevier

Published: Dec 1, 1998

References

  • Economics of operations management: A research perspective
    Banker, R.D.; Khosla, I.S.
  • Vendor performance and alternative manufacturing environments
    Benton, W.C.; Krajeski, L.
  • Supplier/customer inventory relationships under just-in-time
    Chapman, S.N.; Carter, P.L.
  • Empirical research methods in operations management
    Flynn, B.B.; Sakakibara, S.; Schroeder, R.G.; Bates, K.A.; Flynn, E.J.
  • Production/operations management: Agenda for the `80s
    Miller, J.G.

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