Supplier Evaluation Based on Synthesis Method of Principal Component Analysis, Data Envelopment Analysis and Analytic Hierarchy Process

Abstract:

A new synthesis method of analytic hierarchy process (AHP), principal component analysis (PCA) and data envelopment analysis (DEA) was proposed to solve the vendor selection problem. And a case study was made on the method. The study result was compared with those by synthesis method of AHP and DEA. The result shows that the synthesis method can effectively eliminate the data redundancy and it can avoid overlapping evaluation caused by principle co relationship.

Key words:vendor selection problem; principle component analysis (PCA); data envelopment analysis (DEA); analytic hierarchy process (AHP)