Dea / Ahp And The Operating Cost Method-based Supplier Selection Model

Supply chain has been a complicated network instead of former simple chain, with the span-new environment and boundless opportunities supplied by the prosperous e-business, so that the companion selection has become more and more intricate. As the start of supply chain, vendors are responsible for the input of resources and related with a lot of fields in trades. Therefore, rational vendor selection is the key segment in manufacture. Enterprises should evaluate all the potential vendors and then select some of them according to the results of comparison and actuality so as to build a stable strategic alliance and to improve their competitiveness. That's the foundation of supply chain.However, restrained by all kinds of factors, our nation has no normative or perfect system for. vendor selection. In the face of hundreds of suppliers, the enterprises usually emphasize particularly on cost and choose the cheapest one from so many options. Such a short-term action will affect the relation between both sides and result in the decline of quality and the delay of delivery and so on.Based upon such issues as above, the paper has tried to find an effective selection method for enterprises to disinter their promising and suitable vendors depending on theoretical analysis.The paper consists of five parts. Firstly, it presented its literature search and holistic viewpoint, before probing into the theories about SCM and vendor selection. In the third part, an effective selection model was established by combining the DEA/AHP and the ABC (Activity Based Costing). Concretely, this paper provided a attribute-mark for the relatively jarless factors and a cost-mark for those factors related to a certain stock; and integrated them for the final selection; and eventually ? figure out the exact order for manufacture with the help of MATLAB. And then in the next chapter, the paper expatiated how to implement the above method by MATLAB and an illustration was offered. At last, the advantages and disadvantages of this model were summarized.