The Appraisal And Selection Of Suppliers In Global Supply Chain Trend

Nowadays, with economics and information highly developed, supply chain is not an unfamiliar concept. It comes out after the globalization of economics and gradually tends to be global with international division of labor developing further deeper in new economic times. However,it is not well-recognized by the people what the economic explanation hidden behind this fast-growing supply chain globalization is as well as what the effects of the adoption of supply chain globalization strategy are on international trade and economy today. In a supply chain, supplier plays an important role as "the source". Correct appraisal and selection of the supplier have significant effects on promoting the whole efficiency of supply chain system.Therefore, making a thorough research on supply chain globalization and supplier selection in a supply chain could be both theoretical and practical meaningful. This paper begins with an all-round economic analysis on globalization of supply chain management and then introduces the critical process of a supply chain system—supplier selection and appraisal. The writer constructs the integrated model which combined grey correlation to analytic hierarchy process, and then a demonstration case to go with it achieves the combination of theory and practice, better proves the feasibility and veracity of this method.The article firstly analyses the origin and the background of global supply chain on economic aspect angel, and then focuses on supply chain globalization and international division of labor deepening in terms of their interrelationships and interactions using comparative advantage theory and scale theory and also makes some complementally explanations to the two international trade theories; Furthermore, the author points out some limitations of current methods for supplier selection, and then put forward analytic hierarchy process-grey correlation selection model in an attempt to avoid subjectiveness and complex calculations. Supply chain supplier selection is considered as a grey system and based on different weights of varied indicators getting from analytic hierarchy process (AHP) analysis, grey correlation method is then taken to study the linear similarity orders of all the candidate suppliers and finally helps to make decision for long-term partner selection in global supply chain. In the last part, a demonstration case is presented to fully validate this method and it proves that analytic hierarchy process-grey correlation integrated model is a valuable model for optimizing decision-making in supply chain.