The transaction cost-saving model of supply chain

This paper aim to propose a transaction cost-saving model that provides effective guidance in the early stages of supply chain management (SCM). Explaining the description of existing prescriptive definitions for transaction cost (TC) and signaling game theory based on literature review. According to the investigations of TC-prohibitive problem for a case example of NOKIA Mobile parts suppliers, indicating substantial improvement by reducing the number of providers and reallocating them to the markets. This model would help a decision maker to resolve the issues related to selection of suppliers under a set of conflicting multi-objective criteria.