The Model Of Supplier Selection Considering Trust

A best selection of suppliers' combination can reduce a buyer's cost efficiently in SCM. Trust between suppliers and buyers influences the final choose. Managers should decide about two problems: which suppliers are the best and how much should be purchased from each selected supplier.In the first part of this paper the fundamental contents and theories of supply selection and trust between suppliers and buyers are illustrated.And then the flow of supplier selection and the intensification mechanism of buyer-supplier trust show that trust is one of the key factors in vendor selection which should be considered.The third part establish a criteria system for selection to analysis the potential suppliers. This paper focuses on making the decision support system for supplier selection in order to get the maximum total value of purchasing.The fourth part analysis the trust risks. Different extents of trust between suppliers and buyers arose different problems. The paper uses risk matrix to evaluate the rank of different risks of trust in the supplier selection.In the fifth and sixth part applied to supplier selection in Tianjin Electric Construction Company, a supplier selection model is established considering trust through criteria, using integrated analytic hierarchy process and linear programming to choose the best suppliers and place the optimum order quantities among them.At last sensitivity analysis is discussed and improvement suggestions are presented.