Topsis Based on Entropy Weight for Supplier Selection in Coal Group (ID: 2-064)

摘要

Supplier selection is a key phase in supply chain management. The system of evaluation indices for supplier selection was put forward based on coal group corporation Ltd. There are 21 evaluation indices which reflect the supplier from different points in this indices system. At the same time, the multi-level model of TOPSIS(Technique for Order Preference by Similarity to Ideal Solution), which is based on entropy weight, was constructed. The subjectivity which lies in ascertaining factors' weights in lower hierarchy was avoided in this model. So the evaluation result is more objective than other evaluation methods. There is much reference value to decision making for managers. The improved decision model was applied in supplier selection in some coal group. The order preference of suppliers is attained. The excellent supplier and perfect suppliers are ascertained for the enterprise. What's more, the difference among these suppliers can be gained as well. The evaluation result indicates that this method be more reasonable and easier to grasp than other methods. As a result, it is easier to popularize this evaluation method in enterprises.