A model for dynamic strategic vendor selection

Once the decision to outsource has been made, outsourcing vendors supplying the product or service have to be selected. This paper focuses on dynamic strategic vendor selection. Existing approaches supporting vendor selection neglect the interdependencies in time arising from investment costs of selecting a new vendor and costs of switching from an existing vendor to a new one. These shortcomings of current approaches motivate the research presented in this paper. A dynamic decision making approach for strategic vendor selection based on the principles of hierarchical planning will be proposed.