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A decision method for supplier selection in multi-service outsourcing |
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| Authors: | Bo Feng Zhi-Ping FanYanzhi Li |
| Affiliation: | a Department of Decision Sciences, School of Business Administration, South China University of Technology, Guangzhou 510640, China b Department of Management Science and Engineering, School of Business Administration, Northeastern University, Shenyang 110004, China c Department of Management Sciences, City University of Hong Kong, Kowloon, Hong Kong |
| Abstract: | Although supplier selection in multi-service outsourcing is a very important decision problem, research concerning this issue is still relatively scarce. This paper proposes a decision method for selecting a pool of suppliers for the provision of different service process/product elements. It pioneers the use of collaborative utility between partner firms for supplier selection. A multi-objective model is built to select desired suppliers. This model is proved to be NP-hard, so we develop a multi-objective algorithm based on Tabu search for solving it. We then use an example to show the applicability of the proposed model and algorithm. Extensive computational experiments are also conducted to further test the performance of the proposed algorithm. |
| Keywords: | Service outsourcing Supplier selection Collaborative utility Multi-objective 0-1 programming Tabu search (TS) |
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