Selection of Suppliers in the Environment of Supply Chain Based on Grey Multi-hierarchical Evaluation

The evaluation and selection of suppliers is usually an incomplete information and complex multiple attribute decision-making (MADM) problem, which is controlled by a number of tangible and intangible criteria and is difficult to be evaluated. This paper proposes a comprehensive evaluation model of suppliers, which combines the advantages of analytic hierarchy process (AHP), entropy method and grey system method to guarantee the accuracy and objectivity of weight coefficients. Firstly, a three-lever evaluation index system is designed. Secondly, the weight of every indicator is determined by integrating AHP with entropy method. Thirdly, the theory of grey system is adopted to give an overall and systematic evaluation. Finally, an example illustrates the comprehensive evaluation method is simple and effective.