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Purpose

The purpose of this paper is to propose optimization models for assisting in buyer‐supplier negotiations by effectively considering multiple factors and interrelationships among them.

Design/methodology/approach

The approach used in the paper involves a combination of data envelopment analysis and multi‐criteria decision models.

Findings

Categorizes suppliers into efficient and inefficient performers and identifies effective negotiation strategies with respect to cost, quality, and delivery performance.

Originality/value

This original contribution presents models, which buyers can utilize for effectively negotiating with suppliers across a variety of factors.

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