Optimization of Supply Chain Partner Based on VIKOR Method and G1 Method

Abstract

Supply chain management (SCM) has become a hot topic in industrial and academic area. Building strategic partnership of suppliers and manufacturers is a key link in supply chain management. How to select strategic suppliers will be very important to manufacturers. This paper presents a new optimization approach-VIKOR method to solve this problem with conflicting criteria or criteria of different units. Since this method provides a maximum ldquogroup utilityrdquo of the "majority" and a minimum of the individual regret of the "opponent", the obtained compromise solution could be readily accepted by the decision makers. The weights are determined by G1 method and entropy-weight method. Finally, an application example has also been given for testing the feasibility and effectiveness of the proposed method.