Research On The Evaluation And Selection Of Company J Base On Improve TOPSIS Theory

Company J is a world-class consumer goods company,possessing a variety of product lines with global operation platform covering production plants of 14 countries.Most of the products supplied by plants are in the form of Original Equipment Manufacturer(OEM),so it's particularly important for Company J to choose suitable suppliers for products producing.However,Company J has not had a clear and effective supplier evaluation system and quantitative method.Decisions were usually made just by relying on supplier quotation and personal decision of project leader most of the time so that it has a certain subjectivity,which will generate the wrong choices and losses for the company due to the unsmooth product development and unsuccessful mass production.Based on in-depth document research,the company has set up the index system that is suitable for product supplier evaluation of Company J combined with some specific requirements,the current situation of existing suppliers and problems encountered in the previous cooperation with the suppliers.The index system includes five aspects of the enterprise overall level,price level,delivery level,quality level,as well as the technical level with 18 indicators subdivided in detail.Thereafter,Technique for Order of Preference by Similarity to Ideal Solution(TOPSIS)method was applied for comprehensive evaluation.In order to further improve the traditional TOPSIS method,this paper chose TOPSIS method,which is based on prospect theory and interval multiple attribute decision making for comprehensive evaluation,which can provide suggestions and solutions to the present extensive management mode towards suppliers.In the process of actual application,the supplier evaluation method carried out by the paper was made to more understandable and usable Excel template which can be further used in the follow-up supplier evaluation and selection decisions of the Company J.