A generic tool for the selection and management of supplier relationships in an outsourced manufacturing environment: the application of case based reasoning

Abstract

Many companies that were once centrally involved in the actual manufacture of products, and the delivery of their supporting services, now find themselves primarily engaged in integrating a number of other organizations, some of which they may own but many of which will be independent, each of which goes to make up a particular supply network. Consequently, continuously tracking performance of suppliers and an appropriate selection mechanism is one of the crucial activities in managing this supply network. This paper presents an intelligent generic supplier management tool (GSMT) using the case‐based reasoning (CBR) technique for outsourcing to suppliers and automating the decision‐making process when selecting them. The development of GSMT and how the CBR technique is applied is then given, followed by an application of GSMT in Honeywell Consumer Products (Hong Kong) Limited.