Abstract-This paper analyzedthe shortage of the existingmethod of supplier selection and introduced the reverse auction in it. Thetechnique avoided the deficiency of the existing method and the supplier hadmore opportunity to revelation its preponderance thus the supplier selectionwas not unilateral and it could greatly reduce the stock price. The resultsobtained from the application of this method to the supplier selection indicatethat this method is feasible and effective.

Keywords-reverse auction; supplier selection; multi-objectivedecision making 

I. INTRODUCTION

The supplierselection is an important question in Supply Chain Management. It’s directlydecided the competitive ability of the chain. Therefore the appropriatesupplier‘s selection is an important constituent of modern enterprisedevelopmental strategy. The traditional methods of the supplier selection areIntuitional Judgment^[1], Linear Weight^[2]，Analytic Hierarchy Process (AHP)^[3]，Multi-objective Programming, Activity-Based Costingand data envelopment analysis method（DEA）and so on. These methods had played an important rolein the supplier selection, but with the development of the research thesemethods also display some insufficiencies. There are many different situationsand the different reason when the enterprises choose the supplier. Thus therequest of the supplier’s performance is different. Many former researchconsidered few in this aspect；And many researchdidn't established in the foundation of supply chain idea. Therefore most buyeror manufactures select the supplier not from the profit of supplier butthemselves point of view. This paper selected the supplier mainly from theangle of reversion auction.