Selecting the best supplier using analytic hierarchy process (AHP) method (original) (raw)
Related papers
Using Analytical Hierarchy Process (AHP) to Build Suppliers' Selection Model
The analytical Hierarchy process (AHP) is a multi-criteria decision making approach (MCDMA) can be used to solve complex decision problems. This study aimed to use this objective tool to build suppliers' selection model, utilizing competitive priorities "quality, cost, delivery and flexibility" as an evaluation and selection criteria. The researcher has developed an evaluation questionnaire distributed to a simple random sample of functional managers in the chemical industries sector companies enlisted in Amman Stock Exchange, the relative importance degrees were measured for main criteria "competitive priorities" from the perspective of those managers to identify their attitudes when selecting suppliers, the study concluded that the quality is the most important criterion among competitive priorities criteria for selecting and evaluating suppliers as it got a percentage of 0.53 of the general sum, followed by cost criterion that got a percentage of 0.22 so the two criteria have got 0.75 percentage. In the light of what the study has concluded, the researcher recommended the necessity of using Analytical Hierarchy Process in making decisions of selecting suppliers especially in chemical industries sector, and other industrial sectors as well, due to what this approach has of advantages and features for making complex decisions.
The Analytic Hierarchy Process in the Supplier Selection Problem
Proceedings of the International Symposium on the Analytic Hierarchy Process, 2009
The Supplier Selection Problem (SSP) consists of analyzing and measuring the performance of a set of suppliers in order to rank and select them for improving the competitiveness of the whole supply system. As many conflicting factors should be taken into account in the analysis, the problem can be tackled using multi-criteria models and methods. In this work a careful scrutiny of the papers appeared on international scientific journals in the recent years about SSP is provided. The survey highlights that the most used methodology is the Analytical Hierarchy Process (AHP). Thus, an overview view of the current proposals based on AHP and its variants to cope with the SSP is provided. Crucial aspects which arise when the methodology is actually applied in real cases are identified and discussed.
Econometrics: Econometric & Statistical Methods - Special Topics eJournal, 2012
With increasingly competitive global world markets, companies are under intense pressure to find ways to cut production and material costs to survive and sustain their competitive position in their respective markets. Since a qualified supplier is a key element and a good resource for a buyer in reducing such costs, evaluation and election of the potential suppliers has become an important component of supply chain management. Most supplier selection models consider the buyer’s viewpoint and maximize only the buyer’s profit. This does not necessarily lead to an optimal situation for all the members of a supply chain. This paper deals with a brief review of the literature regarding AHP technique and its relevancy to its application in supplier selection process. Supplier selection is a complicated process. This process needs evaluation of multiple criteria and various constraints associated with them. After analysis of the results we found that for manufacturing firms, supplier relia...
Designing a computational tool for supplier selection using analytical hierarchy process
With increasingly competitive global world markets, companies are under intense pressure to find ways to cut production and material costs to survive and sustain their competitive position. Since a qualified supplier is a key element and a good resource for a buyer in reducing such costs at optimum material quality, evaluation and selection of the right suppliers is critical to maintain competitiveness. This decision becomes more complicated in case of multiple suppliers, multiple conflicting criteria, and imprecise parameters. Most supplier selection models consider the buyer’s viewpoints and maximise only the buyer’s advantages and thus do not necessarily lead to an optimal situation for business competitiveness. This paper deals with a multi attribute decision model using AHP for the justification of supplier selection, explore the factors influencing the supplier selection, the relationship between the identified factors and the firm’s performance with reference to manufacturing industries in Bhubaneswar City.
THE ANALYTICAL HIERARCHY PROCESS IN THE SUPPLIER SELECTION PROBLEM
2000
The Supplier Selection Problem (SSP) consists of analyzing and measuring the performance of a set of suppliers in order to rank and select them for improving the competitiveness of the whole supply system. As many conflicting factors should be taken into account in the analysis, the problem can be tackled using multi-criteria models and methods. In this work a careful scrutiny of the papers appeared on international scientific journals in the recent years about SSP is provided. The survey highlights that the most used methodology is the Analytical Hierarchy Process (AHP). Thus, an overview view of the current proposals based on AHP and its variants to cope with the SSP is provided. Crucial aspects which arise when the methodology is actually applied in real cases are identified and discussed.
Supplier selection in supply chain using analytical hierarchy process
International Journal of Productivity and Quality Management, 2013
Supplier selection is an important constituent in supply chain management. Supply chain management emphasises on evaluation and selection of supplier against multiple criteria rather than cost as a single criteria. Multi criterion includes both qualitative and quantitative criteria. In this paper, we have proposed analytical hierarchy process model, to evaluate and rank the potential supplier, supplying copper component (busbar), to a multinational organisation, engaged in designing, manufacturing and delivering a range of products covering various stages of power transmission and distribution system. AHP is a four step decision analysis model which converts the qualitative factor of supplier transferred into the quantitative measure reliability and a decision making method for ranking alternative course of action when multiple criteria must be considered.
Evaluation of suppliers in the process of buying and supplying using analytic hierarchy process
African Journal of Business Management, 2013
Supply chain has absorbed many researchers and industrialists in recent years. Producers do not only try to change the inner situation better in this competitive bazar, but also choose the best bazar and prioritize their programs especially with the phenomenon of globalization and best producers. Choosing the best choices in every decision needs analyzing some factors. As a result, organizations are faced with multi-criteria decision issues. On the other hand, usages of hierarchal analysis technique in relation with choosing criteria have been mentioned in various management and operating issues in several editorials with utopian planning. Several goals can be chosen in the range of priority. In this editorial, trials are based on one scientific, reliable and safer method for choosing active and best suppliers in cultural method to show hierarchal analysis model. This editorial is investigated in three main parts. At first, an overview of the process of hierarchal analysis model is investigated and its properties are mentioned. After that, current method is used to choose famous suppliers and will be mentioned at the end, combining it with the new hierarchal analysis.
Application of the Ahp in Evaluation and Selection of Suppliers
The objective of this paper is to demonstrate the application of the Analytic Hierarchy Process (AHP), a popular multicriteria decision support tool, in assessment and selection of (best) suppliers in an enterprise, namely food wholesalers. Cooperation with suppliers is an important element of quality management. One of the major problems that modern companies have is selection of the best supplier of raw materials, equipment, services, etc. Food sector was selected as particularly sensitive towards potential risks of selection of a wrong supplier. The examples of factors that influence the choice of suppliers include i.e.: price, possibility of discounts, innovativeness. These factors have been organized into hierarchical structure and evaluated by the relevant experts – representatives of food wholesalers in Poland. They indicated, using the 9-point fundamental scale, the relative importance of each factor. Such model can be used as a universal and systematic tool to evaluate supp...
Supplier Selection in Dynamic Environment using Analytic Hierarchy Process
International Journal of Information Engineering and Electronic Business, 2014
In today's highly competitive business environment, the rapidly changing customer demands and with the advent of enterprise wide information systems, the managers are bound to think beyond the conventional business processes and devise new ways to squeeze out costs and improve the performance without compromising on the quality at the same time. Supplier evaluation and selection is one such area which determines the success of any manufacturing firm. Supplier selection is the problem wherein the company decides which vendor to select to have that strategic and operational advantage of meeting the customers' varying demands and fight the fierce competition. This paper presents a simple model based on Analytic Hierarchy Process (AHP) to help decision makers in supplier evaluation and selection, taking into account the firm's requirements. The article is intended to help new scholars and researchers understand the AHP model and see different facets in first sight.