Topsis-AHP simulation model and its application to supply chain management

SCM (supply chain management) emphasizes on the strategic cooperative relationship between core enterprise and enterprise alliance. The selection of strategic partners is an important decision-making problem in SCM and is the key to successful SCM. In this paper, aiming for the supplier selection problem, the author discusses a class of AHP (analytical hierarchy process) technique—simulation approach, which is valuable in that it examines the uncertainty in AHP and helps to reduce the uncertainty in AHP to some extent. Then the approach is illustrated by solving a simplified supplier selection problem in SCM.