Supplier Selection Based On Multi-objective Programming And Relationship Cost

Under globalization, Chinese enterprises experience huge amount ofrisks under clash of Chinese Guanxi culture and western free market culture.Specific risk like Guanxi’s influences on supplier selection creates dilemmafor Chinese enterprises’ supply chain management，which increases supplychain risk. Thus, it is meaningful to study, identify and control risks inChinese enterprise’s supplier selection process.In this paper, firstly, the results of western supply chain riskmanagement are reviewed and risk picture is plot. Secondly,inter-organization risk of Chinese enterprises is identified through case studyand verified by a questionnaire investigation that shows that influence ofGuanxi on supplier selection creates uncertainties in supply chainmanagement. Thirdly, supplier selection criteria are classified byinteractivity, problem-solving method put up accordingly. In thenon-interactive multi-criteria supplier selection problem, an improvedmulti-objective quantum-behaved particle swarm optimization is used tooptimize both convergence and diversity of non-inferior set. We then studiedthe method of measuring inter-organization relationship cost and its evaluation, used it on the non-inferior set. With an interactive decision-making process, we finally deliver a satisfying solution to our supply chain managers.This paper improves and extends relationship cost theory, identifies Guanxi risk factors in Chinese enterprises’ supply chain, provides a new approach for supplier selection.