Non-cooperative negotiation strategies for vendor selection

Vendor selection decisions are typically multi-objective in nature. In an environment of competing vendors for a product or service, some vendors are selected and some are not. This paper describes three approaches for the selection and negotiation with vendors who were not selected. Furthermore, it describes how in certain situations two multi-criteria analysis tools, multi-objective programming and data envelopment analysis, can be used together for this selection and negotiation process. The paper describes non-cooperative vendor negotiation strategies where the selection of one vendor results in another being left out of the solution. (C) 1998 Elsevier Science B.V.