Smart Elderly Care: An Intelligent e-Procurement System for Elderly Supplier Selecting

Abstract

(1) Objective: to accelerate the digitalization of the elderly care service industry and the construction of the smart elderly care industry, this paper designs an intelligent e-procurement system for elderly suppliers selecting from the perspective of smart elderly care, which can enhance the efficiency of elderly care supply chains and assist manufacturers of elderly products in choosing a reliable, high-quality supplier during trades. (2) Methods: the e-procurement system, including six modules, is built with an improved dynamic Markov Decision Process selection model combined with an Analytic Network Process, bringing dynamic evolution of both inventory cost and purchasing cost into long-term reward calculation, and taking into account 15 common indexes and 7 specific indexes when evaluating suppliers’ competitiveness. (3) Results: a real sample shows that when facing 50 suppliers with 50 different quotations, the e-procurement system selects a stable and reliable supplier that brings the best long-term profits for demand enterprises in ten purchase periods, and it makes the selecting process more efficient and more prompt. (4) Conclusions: the model can be used in the circumstance where an elderly product producer is forced to decide on a long-term strategy or reselect a new stable supplier since it is focused on choosing long-term and high-quality suppliers over numerous periods.