A MCDM Approach to Supplier Selection and Risk Management for an Elevator Company

Yan Lin

Abstract

Nowadays the competition between companies is not only decided by cost, service, but also decided by supply chain. As the key factor in supplier chain, supplier’s evaluation has become extremely important. Elevator industry is a representative of customized manufacturing industry. It has various types of elevator models, personalized and diversified customer requirement, performing in a wide variety of material and suppliers. Thus, it is necessary to reduce the difficulty on supplier selection of elevator industry to help reduce cost and improve profit.

The objective of this project is to develop analytical strategy decision models of supplier selection and risk management for a global elevator manufacturing company. The theoretical part of this project focuses on the background of supplier selection, decision making, and features of elevator industry. The methodology of the whole project is a combination of studying the relevant data, existing literature research in recent years and face-to-face interview. Methods from operations research, decision analysis may be integrated to help the company make better decisions to improve its global competitiveness and procurement efficiency. The model will be tested based on the data and actual scenarios from a local company.