Abstract: In this paper a new methodology for vendor selection
and supply quotas determination (VSSQD) is proposed. The problem
of VSSQD is solved by the model that combines revised weighting
method for determining the objective function coefficients, and a
multiple objective linear programming (MOLP) method based on the
cooperative game theory for VSSQD. The criteria used for VSSQD
are: (1) purchase costs and (2) product quality supplied by individual
vendors. The proposed methodology has been tested on the example
of flour purchase for a bakery with two decision makers.
Abstract: Recent changes in supply chains, especially globalization and collaboration, have created new risks for enterprises of all sizes. A variety of complex frameworks, often based on enterprise risk management strategies have been presented under the heading of Supply Chain Risk Management (SCRM). The literature on promotes the benefits of a robust SCRM strategy; however, implementing SCRM is difficult and resource demanding for Large Enterprises (LEs), and essentially out of reach for Small & Medium Enterprises (SMEs). This research debunks the idea that SCRM is necessary for all enterprises and instead proposes a simple and effective Vendor Selection Template (VST). Empirical testing and a survey of supply chain practitioners provide a measure of validation to the VST. The resulting VSTis a valuable contribution because is easy to use, provides practical results, and is sufficiently flexible to be universally applied to SMEs.