Order allocation in purchasing management: a review of state-of-the-art studies from a supply chain perspective

Abstract

Supplier selection (SS) and order allocation (OA) are strategic decisions that have a substantial effect on a company’s performance. However, order allocation is often neglected, since it results from supplier selection and is considered supplementary: little attention has been paid to its specific nature and complexity. Consequently, the authors conducted a systematic literature review specifically regarding order allocation methods. The research aimed to evaluate how often and when the issue has been dignified with an individual focus, independently of the supplier selection problem. This study conducted a comprehensive examination of the order allocation models and solutions, criteria for order quantity allocation, features of suppliers, items, planning periods, and demand most commonly considered in the literature. Finally, it aimed to discover whether supply chain configurations and trends have been considered in efforts to find a solution to the problem. The scientific contribution of this study is threefold: (i) to expand the review of scientific literature regarding order allocation models, (ii) to identify research gaps and highlight research opportunities, and (iii) to suggest a research agenda for the development of order allocation models according to the requirements of current trends in supply chain management.