SUNConferences, Computers and Industrial Engineering 42

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An Integrated Evaluation Of Supplier Using AHP And Grey Association
Lu Liu

Last modified: 2012-06-27

Abstract


The selection and evaluation of suppliers requires high quality quantitative decisions. The objective of supplier evaluation is to rank suppliers with the highest potential for implementing a supply chain’s requirement consistently. The detail of information to indicate these potential suppliers may vary depending on a supply chain member's requirement. Therefore, the evaluation for suppliers should pay close attention to the impacts of associations among these indicators of suppliers.  However, the simple AHP-based evaluation method for suppliers has the defects of association of indicators. Therefore, this presentation proposes an integrated method for supplier evaluation with AHP and grey association. The integrated evaluation method proposes a hierarchical indictor model for suppliers and constructs the discriminant matrix of indicator in DELPHI process, and ranks these indicators with AHP.  Then the discriminant matrix of grey association is computed on the basis of the supplier rank vector computed in the AHP phase. In the final step of the integrated evaluation, the synthesized supplier rank is obtained with the discriminate matrix of grey association. Finally, this presentation presents an empirical demonstration. As shown by the demonstration, the proposed method has a good determined structure in quantitative evaluation to mitigate the risk of subjective interferes. 



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