Application Of An Extended TOPSIS With Inter-values On The Production Equipment Supplier Evaluation Of Company B

In the past few decades, pharmaceutical industry has a rapid development with theadvancements of economic society. These developments have led to the increasing size ofpharmaceutical enterprises and increasing competition among them. Due to the significantimpacts of the quality of raw material and equipments of suppliers on the costs and qualitiesof final productions, the competition among pharmaceutical enterprises have moved fromsingle enterprise to supply chain. Therefore, to raise the competitiveness of the enterprise,pharmaceutical enterprises will pay more attentions to construct long-term and stablecollaboration with their suppliers to enhance the strategic cooperation between them andrealize the sustainable development of enterprise. In this paper, an extended TOPSIS methodwith interval value is proposed for the evaluation of the production equipment suppliers ofcompany B.On the basis of literature research, this paper first analyzed varies evaluation index systemsused in the process of supplier evaluation and selection by now. Then, by combiningrequirements of production equipments with status quo of production equipment suppliers andproblems in the process of production equipment supplier evaluations, an evaluation indexsystem of company B is constructed. This evaluation index system has strong adaptability andmaneuverability and is composed of the following six aspects: situation of enterprise, deliverycapacity, service, price, quality and EHS and technical skill. These six aspects can be furtherdivided into26indexes. To determine the weight of these indexes,45experts inpharmaceutical industry were required to grade these indexes in the form of questionnaire,and grade each index in the form of interval values to decrease the subjectivity of grade. Oncethese questionnaires were retrieved, entropy method was applied to calculate the weight ofindexes in MATLAB programming form. After determining the weight of indexes, bycomparing and analyzing the currently used approaches of supplier evaluation and analyzingthe characteristics of production equipment suppliers of company B, TOPSIS was selected toevaluate the production equipment suppliers of company B. To verify the practicability of theextended TOPSIS method with interval value, this method was adopted to evaluate the mixingtank suppliers of company B. Firstly, six people in charge of production equipment supplierevaluation of company B were required to grade the three mixing tank suppliers of companyB in questionnaire form; secondly, MATLAB was applied to calculate the weight of these sixpeople; finally, TOPSIS method was adopted to sort the three mixing tank suppliers.Compared with the existed production equipment supplier evaluation system of company B, the evaluation results of the extended TOPSIS method with interval value proposed in thispaper are more accurate and more persuasive, which strongly proved the extensiveapplicability of this method in the procession of production equipment supplier evaluation ofcompany B.