Abstract: The paper aims to how to select the bestsupplier more effectively and accurately. It is suggested that recessivepurchasing cost, such as quality, leading time, punctual delivery, purchasingbatch size, should be calculated into total purchasing cost before establishingappraisal system. The paper analyze how those recessive factor influence thetotal cost and try to appraise supplier by entropy weight-grey relationalanalysis . In the end, a case is raised to show whole process of assessment andprove the theory is effective.

Keywords-recessive purchasing cost; Entropy value;Greyrelational analysis

1. INTRODUCTION

For many companies, supplier selectionis core question of purchasing matter. With emphasis on supply chainmanagement, criteria of supplier selection gradually turn to complex indexesfrom simple index such as price or quality. As factors deciding whethersupplier is excellent or not is much, Dickson conclude 23 criteria for supplierselection based on investigation from procurement managers or agents, whichmake decision making more complicated than ever. In recent years, how toappraise and select suitable supplier has been a hot point of research in thefield.

2. DISADVANTAGE OF TRADITIONAL METHOD OF SUPPLIER SELECTION

[3]by the studies of all kinds of factors about selction, supplier comprehensiveevaluation index system is presented, and supplier selection model based on DEAis established. Literature [4] establish a appraisal system and a model basedon BP neutral network method, by a case, the author prove the model iseffective. In literature [5], the author select and compare supplier by methodof support vector machine. Literature [6] establish a fuzzy and comprehensivecriteria appraisal model, by which, the author have a sensitivity analysis on valueof fuzzy assessment and provide more information for decision making ofsupplier selection. There are some other theories, as limited space, we have noway to list them all.