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This paper aims to discuss the application of grey theory to the supplier selection problem. In the Introduction part, the author concludes the weakness of several existing methods to the supplier selection problem and proposes that the grey system theory would be more suitable than others due to its nature and characteristics. After putting forward a set of comprehensive evaluation index system, including Quality, Price, Delivery and Service four main categories, the combination weight for each factor is got through AHP and entropy method. In the Case Study part, the grey relation decision-making method, one useful tool in the grey system theory, is applied to one example. It estimates the four candidates and defines the best supplier.