Establishment of an outsourcing selection model for supply chain management

Supply chain management continues to be the focus of considerable research. Many experts and industry executives point out that not only is competition between enterprises, it is also between supply chains. With strong connections and cooperation between supply chain members, the supply chain increases value for end customers and gains competitive advantage, such relationships also create win–win relationships among supply chain members. Thus, selecting supply chain members which includes outsourcing selection is a very important task in supply chain management. Many studies have mentioned the importance of outsourcing selection in supply chain management, and have established methods and criteria for outsourcing selection. However, few studies considered the outsourcing selection from the perspective of the entire supply chain. Thus, we propose an outsourcing selection model for a supply chain. The outsourcing company selected using this model will maximize performance of the entire supply chain. Additionally, this method also calculates the objective of the supply chain with the involvement of the new outsourcing company to the supply chain and resets the objectives for all supply chain members.