Principal Component Analysis In Supply Chain Management, Logistics Providers In The Evaluation Of Applications

Many disadvantages of traditional management model have been found in enterprise management since 1990's. At the same time, supply chain management comes to be an important way to improve the competence of an enterprise. Selection Supply Chain partnership is the keystone of the Supply Chain Management. In this paper, the subject is evaluation of logistic supplier in the Supply Chain Management. This paper analyses the importance of supplier selection in the Supply Chain Management. Evaluation Index System of logistic supplier is established on the basis of the intrinsic Evaluation Index System. This Evaluation Index System includes many indexes under the direction of Supply Chain Management principle and logistic supplier peculiarity, such as financial conditions,transportation, storage and so on The Evaluation Index System provides the reference for evaluation of logistic supplier. Then, the paper presents Principal Component Analysis method to set the weight of index and evaluate logistic supplier. Principal Component Analysis method and TOPSIS method are adopted respectively in the case study part. The case study shows Principal Component Analysis method can improve the objectivity and quality of evaluation and help the decision-maker grasp the main issue. It can also offer reference for logistic supplier to select appropriate evaluation method.