Research On Supplier Evaluation And Selection Based On Analytic Hierarchy Process

Supply Chain Management(SCM)has become a core area of Enterprise Management.Along with the globalization,SCM grows from simple logistic and distribution management to a net-work system connecting suppliers,customers with information flow,logistic and capital flow.Supplier,as one end of the SCM net-work is critical to the overall performance of the system.The performance of the supplier highly decides the quality level,price level of the final products.It most importantly affects the reacting time to fulfill new customer requirements.Therefore,supplier assessment and selection have been a hot subject issue researched by many experts for many years,and a critical decisionmaking problem for all company.Company V is a multinational company with more than 100 years history.The company focus on the development and manufacturing of industry gas cutting torches and regulators.The current supplier assessment and selection process only focus on price and quality with below two main problems: one is too simple criteria index system,only covering price and quality,not including other areas like technical ability,service;The another is not using any technical method to calculate the supplier score.This article try to review the popular solutions for supplier assessment and selection like ANN,ABC and AHP method,and choose AHP method in a real case of company V.It will use AHP method to select machining supplier for the company.