Author(s)

Shalom Moalem, Avi Herbon, Haim Shnaiderman, Joseph Templeman

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Evaluating and selecting supplies are critical activities in the process of purchasing and supplying materials. Many manufacturing and service organizations operate in a constantly changing business environment and occasionally have to reconsider their steps in terms of supplier selection. This paper offers a methodology that takes into account the impact of a dynamic business environment on the supplier selection process. This methodology represents an applicable tool supported by decision for the planned selection of a single supplier that changes with time out of a supplier group over a finite planning horizon. The suggested methodology has been tested in a large Israeli organization-Clalit Health Services, which comprises large-scale logistical entity working with hundreds of suppliers on an ongoing basis. Our analysis of application results shows that the suggested strategy of switching suppliers over a predefined planning horizon according to the business environment forecast is over 10% more efficient compared to a strategy that does not change the leading supplier throughout the planning horizon. This average improvement is translated into expected efficiency gains on most operative dimensions which represent selection parameters, such as cost per unit, supply lead-time, reputation and more. Nevertheless, some of their value is lost due to some dimensions.

Supplier Selection, Dynamic Environment, Case Study, Healthcare Services

S. Moalem, A. Herbon, H. Shnaiderman and J. Templeman, "Off-Line and User-Oriented Approach for Supplier Selection in Dynamic Environment: A Case Study in the Healthcare Services," Journal of Service Science and Management, Vol. 3 No. 4, 2010, pp. 390-407. doi: 10.4236/jssm.2010.34046.