A Matchmaking Assignment Model for Supply Chain Partnership

Abstract

Partner selection is one of the first steps in establishing partnerships. Traditional supply chain partner selection models assume that a buyer searches for one or more suppliers from a set of suppliers. Once the best supplier is found and selected, a partnership is formed. However, in reality, the relationship itself is bilateral, and the existence of other buyers and suppliers needs to be taken into account. In this paper, an interactive partner selection approach is proposed, where not only the buyers evaluate suppliers, but also the suppliers have the opportunity to evaluate buyers. Considering a marketplace where there are several buyers and suppliers, an integrative model is proposed in the form of an assignment model to optimally match all the buyers and suppliers. The proposed model is illustrated using a numerical example.