An Improved AHP Model Applied in Supply Chain Management

Abstract

Supplier evaluation and selection is always the key problem in supply chain management, and models and algorithms are various. AHP (Analytic Hierarchy Process) model is one of them. For the evaluation and selection problem’s weakness of a supplier, this paper proposes an improved AHP model which uses the information entropy to establish each weight of evaluating criteria’ objectively and determines the projects’ evaluation weight based on the criteria with exponential transformation. At last, one case result shows that the model is scientific and effective.