In this paper a new methodology for vendor selection and supply quotas determination is proposed. The proposed methodology combines Analytic Hierarchy Process for determining the coefficients of the objective functions and a new multiple objective programming method based on cooperative game theory for vendor selection and supply quotas determination. The proposed methodology is tested on the problem of flour purchase by a company that manufactures bakery products. Three criteria are used for vendor selection and quantities supplied determination: (1) purchasing costs, (2) product quality, and (3) vendor reliability.