Probability-based Vendor Selection Model for the Hungarian Automotive Supply Network

Abstract

The aim of this paper is to investigate the structure of the Hungarian automotive supply network and provide a possible solution that mathematically describes the connections between the interested parties. In the study an approximate model is introduced to determine the links between hubs (car manufacturers), nodes (Tier1 suppliers) and edges, combining probability random graph and scale free network theory. During the simulation some main drivers were applied for selection purposes, such as location, turnover, product profile. As a result of the study a potential tool has been designed to support decision-making.