A Study on the Supplier Evaluation and Selection System Based on PCA and TOPSIS

Abstract

With the continuous development of market economy, the competition among suppliers for enterprises has become more and more intense. It is understood that most enterprises in China have not yet formed a scientific and comprehensive supplier evaluation and selection system. In order to help enterprises make objective and specific evaluation of suppliers, this paper establishes a supplier evaluation and selection system model based on principal component analysis (PCA) and TOPSIS method. First of all, from the supplier supply strength and supply stability of the two aspects, refine the five indicators to measure the characteristics of supplier, and then use the principal component analysis to refine and simplify the index data, and calculate the score of each supplier using TOPSIS method. The most important suppliers can be obtained by comparing the scores. Finally, according to the actual capacity needs of enterprises,to calculate the number of suppliers required.