Supplier Selection Of Star Light Company With Risk Management In The Supply Chain

Supplier selection is the important part of the supply chain management. Especially in the manufacturing enterprises, material expenses usually account for 40 percent to 60 percent of income from sales, and take heavy proportion in cost of goods. Whether we can choose the suitable supplier may influence competitiveness of enterprises and even whole supply chain directly or indirectly. Risks in supplier selection are very severe problems. The risk incidents of some suppliers taking place in recent years has caused enterprises and scholars'concern domestic and international. For example, the fire incident happened in Ericsson's chip supplier which is No. 22 chip factory of PHILIPS Co. in New Mexico of U.S.A. in 2000. The supplier selection of star light microwave communication Co., Ltd. Company in Chengdu also exists many risks. For example, fluctuation risk of supplier's price, fluctuation risk of lead-time, etc., which have caused the extensive attention of the layers of management of the company. Though supplier's risks have great influence on enterprises, people seldom take the risk factor into consideration in the supplier selection model. The main innovative contribution in the paper includes the following aspects: The paper establishes a supplier selection model with risk management in the supply chain using linear programming theory from the point of a measurement method of risk -Variance. The model is applied to the practice of star light microwave communication Co., Ltd. Company in Chengdu. The purpose of this paper is to choose the suitable suppliers, the best amount of suppliers and distribute the best quantity to each supplier to realize that the total cost of the supplier selection is minimal through risk theory and supply selection theory of supply chain management and using the supplier selection model established in this paper. The first part of this text provides the basic theory, risk theory and supply selection theory of supply chain management, which form the theoretical foundation for supplier selection with risk management in the supply chain. The second part summarizes the current situation of star light microwave communication Co.Ltd. in Chengdu. It also parses the interior prevalence and inferior position, the exterior opportunity and menace, according to the SWOT analysis in the strategy management theory. It determinates the feasible strategy combination scheme based on the above. And the part analyzes the environment of the suppliers of...