Supply chain management for a purchasing model: A case study in an electronics firm

Abstract

Nowadays, enterprises emphasize quick and accurate responses. Vendor selection and order allocation are the two most important functions in the purchasing management of supply chain management (SCM). This article outlines two efficient ways implemented in SCM. The methodology of Analytic Hierarchy Process (AHP) helps decision managers choose the most appropriate supplier in the shortest time, and linear programming (LP) assists a purchasing member to order adequate quantities from each selected suppliers, greatly reducing costs. In most companies, a purchasing department acts as an important and quick link between the internal and external affairs of the firm. In addition to a quick response, cost reduction is the most important goal in the purchasing department of SCM. By combining two methods, AHP and LP, an enterprise not only chooses the “best suppliers”, but also greatly reduces costs.