Abstract
Multiple factors are required to take into consideration when evaluating the performance of candidates. This paper formulates selecting partners for virtual enterprises as a multi-criteria analysis model, and presents an effective approach by Analytic Hierarchy Process (AHP) and Technique for Order Preference by Similarity Ideal Solution (TOPSIS) for solving the problem. A relatively complete database of indicators for different types of candidate is established first. AHP and entropy are simultaneously uesd to weight these indicators. An empirical example is conducted to illustrate the application of this model. The result shows that the approach can reflect the information emitted by the ratios used.
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