New approach in supplier selection using linear physical programming

Newly, outsourcing has become the superior part of any company. The activities which are not economical to the business or not feasible to manufacture inhouse are being outsourced to suitable suppliers. The major barrier in outsourcing is to select a suitable supplier. The selection of suppliers depends on a firms criterion and it is almost impossible that one supplier satisfies the entire criterion that a firm concerns. The challenge is to optimize selection process based on critical criteria and select the best supplier(s). The supplier selection problems (SCPS) are multi-objective problems and no single methodology can be useful in solving supplier selection problem (SCP). In this paper the author focuses on supplier selection problem in three echelon supply chain with supplier, retailer (we name it buyer here) and customer using linear physical programming approach.