Research On Vendor Selection Of EF Company Based On AHP Method

With continuously further development of international purchasing cooperation,supply chain has got more and more attention from scholars and companies.As a main part of the supply chain management,vendor evaluation and selection research has been continuously developed,different kinds of decision-making method appears constantly.In the meantime,EF Company's development has been obstructed due to weak supply chain management ability.On this background,the author provided an achievable & effective solution after deep analysis and research for EF Company.Through researching and analyzing on vendor evaluation and selection method,also learned and studied the research achievement of scholars in history,combined with EF Company's current situation,author decided to use a developed method-AHP(Analytic Hierarchy Process)as the tool.Together with company management,author established feasible evaluation indicators after analyzed EF Company's products features and market demands.After indicated specific scoring method,scoring items and scoring rules,indicator scores have been settled,with score result in details.Then mathematics calculation was done according to AHP operation steps,including setting up comparison matrix,calculate the feature vector of the matrix,and consistency check,thus the weightiness distribution table for all the indicators are achieved.After that,a vendor selection scoring system has been established in compliance with company situation,combined with the weightiness distribution table,a feasible vendor evaluation and selection method is formed.Following the established vendor evaluation and selection method,a current project has been tested.An optimal decision was made based on 3 potential vendors' evaluation scores.After 6 months observation period,The result has proved that this evaluation and selection method is achievable and effective.This article combined different views from worldwide scholars,used AHP method for analysis and research on vendor evaluation and selection based on EF Company's condition,finalized a scientific and reasonable weightiness distribution table of all the indicators.An effective and feasible vendor evaluation system is formulated.Combined with indicator weightiness,it became an integrated and feasible vendor evaluation and selection system.This article finally proved this scoring and selection system's effectiveness and feasibility by analyzing and verifying of an actual project.