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| This paper introduces the Supplier Relationship Management and the evaluation and selection of suppliers. It aims to summarize a method – Analytic Hierarchy Process (AHP) and Linear Programming (LP) – which is relatively objective and systematic by comparing, researching and analysing the current supplier selection methods. Meanwhile, the computation of AHP can be simplified by using programs; and LP can be solved by using Lindo. The decision-making process has, therefore, been greatly facilitated. The author of this paper believes that it is extremely necessary and meaningful for enterprises nowadays to choose their suppliers reasonably and efficiently. In the process of supplier selection, it is not considerate only to think about the cost of purchasing. What could exactly meet the requirements of enterprises is to consider every aspect of suppliers, analyse the need of purchasing, and use the multiple-objective-selection method to create a suitable mathematical model. Finally, an example of motor supplier selection has been adopted to present the application of AHP+LP in enterprise. |
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| Keywords:Analytic Hierarchy Process, Linear Programming, Supplier Chain Management |
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