Research On Production Outsourcing Supplier Evaluation And Selection Considered Transportation Efficiencies

Production outsourcing as a new way to co-competition is the result of the development of social and economy. Production outsourcing does not just happen, and it appears with the profound background of political and economic. It can help enterprise integrated external excellent professional resources, focus on core businesses, improve agility and customer response ability and reduce the costs and operation risks. More and more enterprises, especially large multinational company, trend to outsource their production to other enterprises. As a part of the supply chain, suppliers, production outsourcing suppliers influence not only does the enterprise enhance core competitiveness, but also the entire supply chain efficiency and profit. So, enterprises are in sore need of an effective production outsourcing supplier evaluation and selection framework to direct them to choice outsourcing suppliers. At the same time, the different transportation modes suppliers use maybe lead to different transportation cost, order cost, transportation holding costs, inventory cost, quality and delivery time, and these factors can affect choices of manufacturers. Therefore, manufacturers should take transportation efficiency in consideration when choosing outsourcing vendors.Based on the efficiency of transportation, this article studies the problem of the evaluation and selection of outsourcing suppliers. Firstly, after summarizing and analyzing a number of relevant literatures, this paper notes differences between production outsourcing suppliers and ordinary ones. In addition, another literature review’s result is the future research trend about the evaluation and selection of outsourcing suppliers. Then, the article constructs a model of transportation efficiency between transportation alternative and suppliers in data envelopment analysis, and establishes a multi-period production outsourcing supplier selection model in multi-objective integer programming model. Later, the paper uses GLOBLE solver in LINGO software and genetic algorithm to solve the two models respectively. Finally, the article proves that the transportation efficiency evaluation model and production outsourcing supplier selection model constructed in the paper are practicable and effective through the case of Fu-Sen Company.The article research the problem of production outsourcing supplier evaluation and selection systematically considering the transportation efficiency, not only enrich the production outsourcing supplier evaluation and selection theoretical research, but also provide ideas and guidance when enterprises evaluate and select production outsourcing suppliers.