Supplier Selection Model Based on the Grey System Theory

There are usually three methods for supplier slecetion, they have their own characteristics and are suitable for different environmental requirements. In real economic activity, supplier selection usually take place in the environment with insufficient information, the evaluation indicators of which show both the quantitative and qualitative characteristics. Grey system theory solved the evaluation issues under the circumstances with limited data and incomplete or inadequate information. It can whiten and quantify the grey qualitative indicators, and effectively reduce the subjectivity of indicators weight measurement in the previous expert investigation or level analysis, and provide new ideas for effectivly solving supplier evaluation index weight problems and scientifically chosing suppliers. We introduce the grey system theory into this paper, and give examples to support the construction of supplier selection model (grey correlation analysis model) through seven progressive steps. The model has universal significance in supplier selection problems under the environment with insufficient information and evaluation indicators are both quantitative and qualitative.