A Decision Support System for Purchasing Management of Large Projects
Operations Research · 1988 · Volume 36 · Issue 6
Abstract
This paper describes a model based Decision Support System (DSS) for purchasing materials and components for large projects. The DSS may be used under two scenarios. Under the first scenario, we have a project to execute, and we are looking for a good way to manage the purchasing to minimize the expected costs. The decisions under our control are when and from whom to order each item. Under the other scenario, we are bidding for the project, and wish to assess the costs associated with the purchasing decisions which we should consider before making our bid. In both cases, we take into account expected out of pocket costs as well as lateness and/or expediting penalties. The DSS is designed to help choose the best supplier for each item and schedule the placement of the orders—decisions which are very difficult to make well without such a model based DSS.
Keywords
information systems, management: managing information systems for purchasing support, inventory/production applications: purchasing application and production scheduling, inventory/production policies, ordering: ordering policies by using a decision support system
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