Methods and Example of Manufacturing Enterprise in Logistics Vendor Selection

There are several methods for manufacturing enterprises selecting logistics vendors, such as Linear Weight, Analytic Hierarchy Process (AHP) and Single-target in multi-source-vendors selection which contains Linear Programming ( LP) and Mixed-integer Programming. However, practical investigation reveals that bidding is the highest frequency method used by enterprises. Bidding is a simple and effective method in selecting many logistics vendors but it is too subjective when the selection goes on further. Viewing from the aspect of selection cost and income, AHP is more scientific for multiple-selection. It will be more effective for manufacturing enterprises selecting logistics vendors by combining bidding and AHP, which are easy operational, scientific and effective methods. This paper analyzes such a combined method in detail and provides an example.