The Determination of Supplier of Raw Materials using Analytical Hierarchy Process Method (AHP) (original) (raw)
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The purchasing function of a firm directly affects its competitive ability. Purchasing managers need to periodically evaluate the performance of suppliers in order to retain those who meet their requirements. There are various criteria for supplier selection and evaluation. This report provides a guideline for establishing supplier selection criteria for purchasing activities of University Procurement Department in accordance with some purchasing topics. The analytic hierarchy process (AHP) decision making process functions in terms of the multi-criteria analysis for cost, flexibility, quality, delivery, and variety. The present report provides an accurate and easy classification in supplier attributes that have been prioritized in the model.
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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.
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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.
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.
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...
Ceramic supplier selection using analytical hierarchy process method
This study tried to implement the Analytical Hierarchy Process (AHP) and the weights of the criteria and sub-criteria to find the best supplier. According to QCDFR (quality, cost, delivery, flexibility, and responsiveness). This study took place in one of the biggest tile producers, ranks fifth in the world and the first in Indonesia. However, the company currently only uses quality, cost, and delivery methods to choose the best supplier of raw material, namely feldspar. This research tries to use the systematic method to find the best supplier based on the importance of the criteria. The method used the quantitative approach to enumerate the data to analyze the information. The company analyzed six suppliers. The primary tool used in this research is a Super Decision Software version 3.2 to create and manage the AHP model, enter the judgments, get results, and perform sensitivity analysis on the results. The result found that Semarang is the best supplier. The company will choose Semarang to become the company's business partner compared to the other suppliers because Semarang has met the criteria that the company prioritizes the most. By having the best supplier selection, the company can provide the right material consistency and suitable material suitability.