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Presentation
An Improved Supplier Selection Method Integrated to the Conceptual Design Phase
IIE Annual Conference (2009)
  • Ming-Chuan Chiu, The Pennsylvania State University
  • Gül E. Kremer, Iowa State University
Abstract
Supplier selection is one of the key decisions in the supply chain management. Most of the firms in a
supply chain system have to make the “make” or “buy” decisions of components during product design
phase. Outsourcing can reduce the product development time and cost, increase the external economy of
scale, and help respond agilely to variability in demand. Despite its importance, however, most papers on
this topic focus on the managerial issues, and only a few research papers consider the supplier selection
problem from an engineering point of view. There is a need to further explore this issue. In this paper, we
present a framework where the supply chain structure is investigated relative to the product architecture
using graph theory. Product architecture is first formulated according to design repository and
Decomposition Approach. Supplier selection issue is considered by evaluating the potential impacts of
assembly and inventory decisions. The optimization of both product design and supply chain design can be
simultaneously achieved during design stage. A case study in bike industry is presented to demonstrate the
advantages of this method.
Keywords
  • Supplier Selection,
  • Product Architecture,
  • Graph Theory,
  • Design Repository
Disciplines
Publication Date
2009
Comments
This is a proceeding published as Chiu, Ming-Chuan, and Gül Okudan. "An Improved Supplier Selection Method Integrated to the Conceptual Design Phase." In IIE Annual Conference. Proceedings, p. 1518. Institute of Industrial and Systems Engineers (IISE), 2009. Posted with permission.
Citation Information
Ming-Chuan Chiu and Gül E. Kremer. "An Improved Supplier Selection Method Integrated to the Conceptual Design Phase" IIE Annual Conference (2009)
Available at: http://works.bepress.com/gul-kremer/128/