Research On The Supplier Evaluation In Company G

The rapid progression of technology,gradual global impact on economy and the widening use of newfound resources has led to a need for manufacturers to increase the efficiency of the production of goods,invest more in research and development,and also to enhance enterprise structures.Traditional supplying systems possess amplified shortcomings under the intensive competition in the marketing industry.It is crucial for companies to adapt to the changing industry by emphasizing on their own advantages and to transform their supply chains as a whole.Through such management,companies can achieve their goals accordingly by integrating internal and external resources effectively.In order to perform to exceed expectations,companies need to make a decision in choosing a suitable supplier.However,the decision in choosing a proper supplier can be incredibly difficult.Companies have to construct an assessment model system to take a comprehensive evaluation of suppliers so as to choose a suitable supplier.Hence,since the current existing system is lacking reviews,we have decided to use the data envelopment analysis to assess the supplier.Data envelopment analysis is a non-biased method and hence presents a more scientific and objective viewpoint.Moreover,it is a linear method which allows quick and efficient calculation.Through the use of integrative,quantitative and qualitative principles,this article constructs an evaluation system based on different viewpoints.In order to overcome the correlation between different indexes,this articles analyses both the input index and the output index.Through the principal component analysis method,we can use lesser index of input and output in the data envelopment analysis stage.In the event that the result of data envelopment analysis recommends multiple suppliers,we can use the optimal virtual decision making unit,so that further evaluation by data envelopment analysis is made possible.According to the new ranking,we can avoid choosing multiple effective decision making units.As for the relationship between the evaluation indicators,our evaluation system uses the principal component analysis method to find the main components of inputs and outputs,and also increases the applicability of the data envelopment analysis in small samples.Lastly,in the case study,we used the SAS to process operational data of company G,and analyze the results in detail.The final choice of optimal supplier is thus based on data envelopment analysis.