Supply chain focus dependent supplier selection problem

G. Vanteddu et al. / Int. J. Production Economics 129 (2011) 204–216 215new parameter called coefficient of inverse responsiveness (CIR) tomodel response related costs at a stage, which also enhances thescalability of the model. In an optimization context, the developedcost function for the ‘building block’ could be extended for any typeof supply chain network to aid in supplier selection.So as to make the model more tractable we had to make certainsimplifying assumptions and following are some of the limitationsrelated to those assumptions. We did not consider order splitting inour model, which is a common phenomenon in many purchasingdecision. We plan on considering this aspect in our future research.We also did not consider buyer collaboration, which is notuncommon while making purchasing decisions. It would aninteresting extension, if this aspect is included. We did not takeinto account any qualitative factors such as quality, suppliers’reputation, staying power/financial stability, cultural match, etc. inour model. An integrated framework that takes into account someof these factors would add more value to the model.A useful extension of the model is to account for non-stationarydemands and to consider products with seasonal demands.Another limitation is that volume discounts and quantity discountstypically offered by suppliers are not taken into account in ourmodel. Introducing contracts that take into account such discountswith financial ramifications will also be a very fertile area to pursue,which will make our model mimic the reality more closely. So as tomake our research realistic, it would make more sense to considercapacity constraints at certain stages.Product mix related flexibility is crucial which is not addressedin our model. 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