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Vendor Profile Analysis
Author(s) -
Thompson Kenneth N.
Publication year - 1990
Publication title -
journal of purchasing and materials management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.75
H-Index - 92
eISSN - 1745-493X
pISSN - 0094-8594
DOI - 10.1111/j.1745-493x.1990.tb00494.x
Subject(s) - vendor , monte carlo method , computer science , point (geometry) , symphony , operations research , statistics , mathematics , business , marketing , physics , geometry , acoustics
This article describes a modified weighted point model for aiding decision makers with the prepurchase evaluation of vendors. Referred to as vendor profile analysis (VPA), the model is designed for use on microcomputers employing spread sheet software, such as Lotus 1‐2‐3 and Symphony. The power of VPA stems from its use of the Monte Carlo simulation technique for modeling the uncertainty associated with predicting vendor performance on evaluative criteria. The use of Monte Carlo simulation simplifies decision makers' input to the evaluation model and provides output that contains considerably more information upon which to base purchase decisions than do standard weighted point decision models.