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Supplier Selection

  1. Damian R. Beil

Published Online: 15 JUN 2010

DOI: 10.1002/9780470400531.eorms0852

Wiley Encyclopedia of Operations Research and Management Science

Wiley Encyclopedia of Operations Research and Management Science

How to Cite

Beil, D. R. 2010. Supplier Selection. Wiley Encyclopedia of Operations Research and Management Science. .

Author Information

  1. University of Michigan, Stephen M. Ross School of Business, Ann Arbor, Michigan

Publication History

  1. Published Online: 15 JUN 2010

Abstract

Supplier selection is the process by which firms identify, evaluate, and contract with suppliers. The supplier selection process deploys a tremendous amount of a firm's financial resources. In return, firms expect significant benefits from contracting with suppliers offering high value. This article describes the typical steps of supplier selection processes: identifying suppliers, soliciting information from suppliers, setting contract terms, negotiating with suppliers, and evaluating suppliers. It highlights why each step is important, how the steps are interrelated, and how the resulting complexity provides fertile ground for ORMS research.

Keywords:

  • competitive tendering;
  • supplier qualification screening;
  • request for quotes;
  • supply base;
  • bidding