Research on supplier selection for inter-firm product collaborative development

With rapid increase of component outsourcing, suppliers play more important roles in new product development (NPD). Selecting proper participator and deciding the time and degree of involvement have great impact on cost, time and innovation of product development. Components and suppliers were sorted based on analysing the characteristics of supplier involvement in new product development process. According to the requirements of the product collaborative development, an evaluation index system, which includes satisfaction, flexibility, risk and confidence index, was proposed. Then, an evaluation algorithm and process for supplier selection was given. Finally, an example of supplier selection in new product development is discussed.