An optimization framework for improving supplier delivery performance

Given the growing importance of supplier delivery performance in buyer–supplier alignment and end-to-end fulfillment of supply chains, we investigate the managerial implications of a buyer who financially invests to improve a supplier’s delivery performance by demonstrating an optimization model for the buyer’s investment decision to reduce untimely delivery. We illustrate how improving supplier delivery performance leads to better supplier management. Our analysis utilizes the ingenious zeta transforms widely used in engineering to showcase its applicability in today’s complex supply landscapes that use multiple suppliers to create efficient frontiers for diverse sourcing initiatives.