Research On Supplier Selection Based On Entropy Weight Grey Correlation Analysis Method

Now,Profit rate of feed industry is becoming low and competition is becoming fierce.There are many companies face two problems:supply side and demand side.In order to reduced the negative impact of the supply from the unstable supply side.Enterprises pay more and more attention to the supply chain management and supplier management.Under the guidance of integrate supply chain,enterprises gradually look supplier selection as a strategic task.Because of the merits for supplier selection seriously affect the enterprise's financial position and operating results.So the construction of a supplier evaluation index and the choice of supplier's success or failure are particularly important to cultivate the core competitiveness of enterprises.In my view,the upstream and downstream enterprises supplier relationships between the enterprise is given priority to short term relationship,lacking long-term relations of cooperation and the interest distribution mechanism.As a result,firms have a lot of suppliers,resulting in obvious negative effect.At the same time,it has some disadvantages and limitations about research of supplier selection decision-making evaluation.The study of the construction of supplier evaluation-index for the feed industry has strong theoretical guidance and practical signification.This paper study and analyze the main factors which affecting the choice of suppliers through the study of a large number of related research achievement.Then,by comparing the advantages and disadvantages of various supplier selection method and combining with the present situation of A company.In order to avoid the deviation caused by subjective factors to some extent and proposing qualitative and quantitative method,we use the model of the grey relation entropy analysis to research and demonstration this paper.Later,following the basic principles of supplier selection,constructing supplier evaluation system and based on the model of entropy method is used to determine the weight of each evaluation index.The paper use grey correlation analysis method to solve the grey correlation coefficient.Finally,A company choose to cooperate with suppliers of large grey correlation coefficient.Now,the research' achievements of the supplier selection method has been applied successfully in A business.As a result,it has a good effect.