Abstract
Purpose: When choosing a supplier, many companies give priority to the lowest cost of products. Problems arise when the consumer wants to buy products with several better quality characteristics, but the products have only one of them. The aim is to establish a link between the quality characteristics of the product and its market value in terms of consumer benefits.Methodology/Approach: The proposed model is based on determining the importance of criteria that determine the indicators of quality, reliability, characteristics of products and their comparison with the market price at which these products are supplied to the consumer. The model is built on the basis of statistical processing of the data received from consumers about preferences at the choice of production.Findings: The method of determining the optimal supplier based on the cost and quality indicators of the product. Some indicators of the quality of products and their ranking by significance for the consumer are given. It gives the examples of calculation methods for univariate and two-factor analysis. It shows the ways of diagramming the determination of values of factors of production.Research Limitation/implication: The model is relevant only at close market value of production for the consumer.Originality/Value of paper: The methodology of criteria-based evaluation of the quality indicators of the supplied products or services allows making a selection of a products supplier on the basis of quality characteristics of the supplied products.
Highlights
In today’s world, contracts for the supply of components, products or services, are concluded at the end of the auction
If the amount priority of the contract is clear, than the quality characteristics are mapped according to the principle: those, whose values are above, are preferred
The methodology of criteria-based evaluation of the quality indicators of the supplied products or services allows making a selection of a products supplier on the basis of quantity characteristics of the supplied products
Summary
In today’s world, contracts for the supply of components, products or services, are concluded at the end of the auction. It often happens that the procurement services of companies are faced with a situation when different suppliers have opposite values of the indicators of interest of products and inversely proportional values of the contract amount or when it is required to choose the products on several quality parameters which don’t state the obvious leader. This choice affects the economic, logistic and production characteristics of the finished product of the customer (Shalygin, 2012). The approach closest to the proposed methodology is proposed by Visawan and Tannock (2004) is based on costs and benefits Hajduova (2014) based on an estimate of the cost of improving processes
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