An AHP Model on Appraising Electricity Material Bidders

In China, it is known that as a subordinate of state owned electricity power company, a typical electricity material company provides almost all kinds of electricity material to the construction and maintenance of nation wide or local electricity power grid, and its fund for procurement of electricity material must be subjected to governmental fiscal budget. Therefore it is highly necessary for an electricity material company to select the supplier cautiously before it signs a procurement contract with one of bidders. In this paper, the authors conduct a research in optimizing the method of selecting the best candidate in a bidding process, namely, how to establish a perfect mechanism to make reasonable or proper appraisal for the bidders. AHP theory is considered to set up a scientific model in doing this. At first, the AHP theory and its newest research fruits are reviewed; secondly, the fundamental framework of appraising bidders is brought up based on the example of a local Electricity Material Company in Hubei Province, China. At last the discussion and conclusions about this study are put forward.