An evaluation of vendor selection models from a total cost of ownership perspective

TLDR: In this paper, the authors propose to use the concept of Total Cost of Ownership as a basis for comparing vendor selection models and illustrate the comparison with a real life data set of the purchasing problem of ball bearings at Cockerill Sambre, a Belgian multinational company in the steel industry.

About: This article is published in European Journal of Operational Research.The article was published on 2000-08-16 and is currently open access. It has received 379 citations till now. The article focuses on the topics: Total cost of ownership & Purchasing.

Figures

Figure 1 : Usage of the Ball Bearings.

Frequently asked questions

Q1. What have the authors contributed in "An evaluation of vendor selection models from a total cost of ownership perspective" ?

In this paper the authors propose to use the concept of Total Cost of Ownership as a basis for comparing vendor selection models. Mathematical programming models outperform rating models and multiple item models generate better results than single item models from a Total Cost of Ownership perspective for this specific case study. 

Q2. What have the authors stated for future works in "An evaluation of vendor selection models from a total cost of ownership perspective" ?

For example, at the order level, costs can differ substantially among the different suppliers due to the possibility of ordering via ED !.