Supply chain grounded on information theory: A hierarchical economic information filtering model of supplier selection

This paper establishes a new hierarchical economic information filter model of supplier selection by analyzing the development process of the supplier selection methods as well as the historic criterion system and on the basis of the results of multiple turns of investigating and interviewing the management staff in different manufacturing enterprises. This model divides the selection process where the leading enterprises on the supply chain choose the suppliers into three stages: the stage of information collection and release, the stage of supplier selection and the stage of dynamic assessment of suppliers, corresponding to the criterion system of selecting and evaluating suppliers in Hierarchyl search, Hierarchy2 search, and Hierarchy 3 search. The establishment and application of this model can help specify the major tasks and foci of selecting and evaluating suppliers at different stages. It can help the leading enterprises adjust suppliers dynamically in terms of the assessment results. It can help shield from information disturbance and noises in selecting and evaluating suppliers at different stages. It can be seen as an extension of filtering economic information at different stages and in different modules. © 2007 IEEE.