Facing the consumer electronic market, retailers would like to maintain sufficient shelf levels by procuring products from their product suppliers so they can satisfy their consumers with the highest possible service level. On the supply side, the product suppliers (i.e., final assembly manufacturer) have to fulfill the orders on time while they also need to source components from component suppliers to meet production needs. The demand-supply interactions between retailers, product suppliers and component suppliers thus form a multi-tier supply chain. Addressing various issues of supply chain, the CPFR committee of VICS (Voluntary Inter-industry Commerce Standards) Association developed a CPFR (Collaborative Planning, Forecasting and Replenishment) model which accentuates collaboration activities among chain members. Since its introduction, CPFR has been recognized as one of the leading industrial standards of supply chain.
Concerning the collaborative replenishment of CPFR and perceiving from the final assembly manufacturer in the demand-supply scenario, this research focuses on the collaboration operations to develop a decision support framework which addresses the relationships between the focal assembly manufacturer and its retailers and component suppliers. Among others, the key issue is how to select component suppliers in order to meet the production needs and fulfill a given retailer order. The framework consists of three phases of analysis: (1) stakeholder analysis for identifying the requirements and key attributes of the retailer and suppliers, (2) mathematics programming for supplier selection, and (3) simulation of the order fulfillment process. A case study of a cellular phone manufacturer is presented to demonstrate the decision support framework.

References
AMR, How Can We Collaborate? Let Me Count the Ways, SCM Report, American Manufacturing Research Inc., 1999.
Bowersox D., P. Daugherty, C. Droge, D. Rogers and D. Wradlow, “Leading Edge Logistics Competitive Positioning for the 1990’s,” Council of Logistics Management, Oakbrook, IL, 1989.
Brugha, R. and Z. Varvasovszky, “Stakeholder Analysis: A Review,” Health Policy and Planning, Vol. 15, pp. 239-246, 2000.
Chan, T. S. Felix, S. H. Chung and S. Wadhwa, “A Heuristic Methodology for Order Distribution in a Demand Driven Collaborative Supply Chain,” Int. J. Prod. Res., Vol. 42, No. 1, pp. 1-19, 2004.
Choi, Y. Thomas and Janet L. Hartley, “An Exploration of Supplier Selection Practices across the Supply Chain,” Journal of Operations Management, Vol. 14, pp. 333-343, 1996.
De Boer, Luitzen, Eva Labro and Pierangela Morlacchi, “A Review of Methods Supporting Supplier Selection,” European Journal of Purchasing & Supply Management Vol. 7, pp. 75-89, 2001.
ECR Europe, A Guide to CPFR® Implementation, Chapter and Appendix on KPIs, VICS CPFR Tab Documents (Third Ed.), 22 Sept. 2003.
Dickson, G.W., “An Analysis of Vendor Selection Systems and Decisions,” Journal of Purchasing, Vol. 2, No. 1, pp. 5-17, 1966.
Donaldson, T. and L. E. Preston, “The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications,” Academy of Management Review, Vol. 20, pp. 65–91, 1995.
England, W. B. and Leenders, M. R., Purchasing and Materials Management, Richard Erwin, Homewood, 1975.
Fawcett Stanley E., Roger Calantone and Sheldon R. Smith, “Delivery Capability and Firm Performance in International Operations,” Int. J. Production Economics, Vol. 51, pp. 191-204, 1997.
Freeman, R. E., “The Politics of Stakeholder Theory: Some Future Directions,” Business Ethics Quarterly, Vol. 4, No. 4, pp. 409-421, 1994.
Freeman, R. E. and Jr. D. Gilbert, Managing Stakeholder Relations, In Prakash, S., Falbe, C., ed., Business and Society: Dimensions of Conflict and Cooperation. Lexington Books, Toronto, Canada, pp. 397–422, 1987.
Freeman, R.E. and Jeanne Liedtka, “Stakeholder Capitalism and the Value Chain,” European Management Journal, Vol. 15, No. 3, pp. 286-296, 1997.
Grimble, R. and K. Wellard, “Stakeholder Methodologies in Natural Resource Management: A Review of Principles, Contexts, Experiences and Opportunities,” Agricultural Systems, Vol. 55, No. 2, pp. 173-193, 1997.
Ghodsypour S. H. and C. O’Brien, “A Decision Support System for Supplier Selection Using an Integrated Analytic Hierarchy Process and Linear Programming,” Int. J. Production Economic, Vol. 56-57, pp. 199-212, 1998.
Ghodsypour, S.H. and C. O''Brien, “The Total Cost of Logistics in Supplier Selection, under Conditions of Multiple Sourcing, Multiple Criteria and Capacity Constraint,” Int. J. Production Economics, Vol. 73, pp. 15-27, 2001.
Hammami, A., P. Burlat and J.P. Campagne, “Evaluating Orders Allocation within Networks of Firms,” Int. J. Production Economics, Vol. 86, pp.233–249, 2003.
Hayes, R., S. C. Wheelwright and K. B. Clark, Dynamic Manufacturing: Creating the Learning Organization, Free, New York, 1988.
Humphreys, P. K., Y. K. Wong and F. T. S. Chan, “Integrating Environmental Criteria into Supplier Selection Process,” Journal of Materials Processing Technology, Vol. 138, pp. 349-356, 2003.
Johnson, M., “Collaboration Data Modeling: CPFR Implementation Guidelines,” Conference Proceedings of the Council of Logistics Management, 1999.
Kochan, A. T. and S. A. Rubinstein, “Toward a Stakeholder Theory of the Firm: The Saturn Partnership,” Organization Science, Vol. 11, No. 4, 2000.
Lau S.K. Jason, George Q. Huang and K.L. Mak, “Impact of Information Sharing on Inventory Replenishment in Divergent Supply Chains,” Int. J. Prod. Res., Vol. 42, No. 5, pp. 919-941, 2004.
Lee, E. K., S. Ha and S. K. Kim, “Supplier Selection and Management System Considering Relationships in Supply Chain Management,” IEEE Transactions on Engineering Management, Vol. 48, No. 3, pp.307-318, 2001.
Lee L.H., E.P. Chew and T.S. Ng, “Production Planning with Approved Vendor Matrices for a Hard-disk Drive Manufacturer,” European Journal of Operational Research, Vol. 162, pp. 310–324, 2005.
Lewis, H., Industrial Purchasing Principles and Practices, Richard Erwin, Chicago, 1943.
Lin, Jyhjong and Tsui-e Lin, “Object-Oriented Conceptual Modeling for Commitment-based Collaboration Management in Virtual Enterprises,” Information and Software Technology, Vol. 46, pp.209-217, 2004.
Manthou, V., M. Vlachopoulou and D. Folinas, “Virtual e-Chain (VeC) Model for Supply Chain Collaboration,” Int. J. Production Economics, Vol. 87, pp.241–250, 2004.
Mitchell, K. R., B. R. Agle and D. J. Wood, “Toward a Theory of Stakeholder Identification and Salience,” Academy of Management, Vol. 22, No. 4, pp. 853-886, 1997.
Motwani, J., M. Youssef, Y. Kathawala and E. Futch, “Supplier Selection in Developing Countries: A Model Development,” Integrated Manufacturing System, Vol. 10 No. 3, pp. 154-161, 1991.
Moore, C. and G. Graham, Streamline Your Business Processes with Workflow & Extranet Solutions, Giga Information Group, 2001.
Nokkentved, Chris, Collaborative Processes in e-Supply Networks, ECoE Research Report: European SAP Centre, 2000.
NTT Communication Corporation, Collaboration between Advanced Companies, Global Professional Services Group, Vol. 12, 2002.
Recklies, D., The Value Chain, Recklies Management Project GmbH, Available Online, www.themanager.org, 2001.
Sahay B.S., “Supply Chain Collaboration: The Key to Value Creation,” Work Study, Vol. 52, pp. 76, 2003.
Sawy, El Omar A., Redesigning Enterprise Process for e-Business, McGraw, New York, 2001.
Shapiro, B. P., V. K. Rangan and J. J. Sviokla, "Staple Yourself to an Order," Harvard Business Review, pp. 113-121, July-August 1992.
Sodhi, S. M., “Applications and Opportunities for Operations Research in Internet-Enabled Supply Chains and Electronic Marketplaces,” INTERFACES, Vol. 31, No. 2, pp. 56–69, 2001.
Talluri, S. and R. Narasimhan, “Vendor Evaluation with Performance Variability: A Max-Min Approach,” European Journal of Operational Research, Vol. 146, pp. 543–552, 2003.
Vickery, S., R. Calantone and C. Droge, “Supplier Chain Flexibility: An Empirical Study,” The Journal of Supply Chain Management, Vol. 35 No. 3, pp. 16-24, 1999.
Voluntary Interindustry Commerce Standards (VICS), Collaborative Planning, Forecasting, and Replenishment, www.cpfr.org.
Voluntary Interindustry Commerce Standards (VICS), Collaborative Planning, Forecasting and Replenishment (CPFR®) Guidelines (Second Ed.), June 2002.
Voluntary Interindustry Commerce Standards (VICS), Collaborative Planning, Forecasting, and Replenishment (CPFR®): An Overview, 18 May 2004.
Voluntary Interindustry Commerce Standards (VICS), Collaborative Planning, Forecasting, and Replenishment (CPFR®): Roadmap (Third Ed.), 1998.
Wang Shouhong, “Object-oriented Task Analysis,” Information & Management, Vol. 29, pp. 331-341, 1995.
Weber, C. A., J. R. Current and W. C. Benton, “Vendor Selection Criteria and Methods,” European Journal of Operational Research, Vol. 50, pp.2-18, 1991.
Yan Hong, Zhenxin Yu and T.C. Edwin Cheng, “A Strategic Model for Supply Chain Design with Logical Constraints: Formulation and Solution,” Computers & Operations Research, Vol. 30, pp. 2135-2155, 2003.
Zhu, J., “A Buyer-seller Game Model for Selection and Negotiation of Purchasing Bids: Extensions and New Models,” European Journal of Operational Research, Vol. 154, pp. 150-156, 2004.