W Supplier Selection Study

With the growing market competition and quickly development of modern consumption, there is growing competition among companies. In order to expand the market and maintain companies’ healthy development, more and more companies have paid close attention to chain supply management. Supplier selection, as an important starting point of supply chain management, has become the major method of increasing the product quality and companies’ operating efficiency,reducing cost and risk.The paper is based on investigation and interviews in Company W,real work experience and literature research. Firstly introducing W company’s industrial background and base situation and briefly introducing the domestic and foreign research status on supplier selection. In addition, the paper give brief analysis of the relevant theories and methods of supplies selection, and the introduce the relevant situation and problems lying in supplier selection in Company W. Thirdly, the paper classifies the suppliers of Company W through the application of AHP and improve the supplier selection process. On the basis of supplier classification, establishing the supplier selection evaluation index system with different supplier types. Clearly the meaning and calculation methods of the quantitative indicators and qualitative indicators to quantify. Fourthly, on the basis of current supplier selection evaluation methods and Company W’s real situation, the paper builds different supplier selection method of different type of supplier. Strategic suppliers use the AHP, Important suppliers and Normal suppliers use the linear weight method. Purchasing quantity allocation problem between supplier can be solved by AB angle method. Suppliers can Be divided into A Supplier(major supplier)and B Supplier(vice supplier). Finally, the paper explains the the rationality and practicability of these method by the case of Company W’s combination fireworks and day fireworks supplier selection evaluation.