A paper entitled "Determination of a Preferred Supplier Matrix for Raytheon: A Goal Programming Approach" by Stacey Markus, Raytheon Network Centric Systems and MBA Student in the Doermer School of Business and Management Sciences was presented in November in the Student/Faculty Collaboration Track of the Academy of Business Disciplines 2008 Annual meeting held in Florida. This paper received the "Best Student-Faculty Collaboration Award" for the 2008 national conference. Congratulations!
The dramatic growth of outsourcing can be attributed to the influences of market globalization, 'just-in-time' production scheduling, internet technologies and increased focus on cost efficiency. The need for firms to work with their up-stream' supply chain partners in order to improve performance has placed increasing importance on the 'make or buy' decision and the related purchasing function. This, in turn, has focused attention on the process of vendor selection. this case study, involving Raytheon Network Centric Systems, constructed a binary optimization model, using goal programming, for identifying the preferred supplier for each of multiple component products. Post-optimality analysis was used to test the sensitivity of the vendor recommendation to changes in several key parameters used in the model's design.