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Supplier Evaluation and Selection by Using the Analytic Hierarchy Process Approach
Alsuwehri, Yaser N.
Alsuwehri, Yaser N.
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Abstract
Supplier selection is not only a process to choose the lowest price, it is a
process to select the best supplier that can submit the best deal on all required
criteria among other suppliers. Selecting a supplier is a complex problem
involving qualitative and quantitative multi-criteria. Selecting a vendor is now as
important of a process as developing new products. There is no one best way to
evaluate and select suppliers; organizations use a variety of different
approaches. The AHP process is one of the approaches that are used to select
the right supplier. Therefore, an AHP supplier selection model is formulated and
then applied to a given set of data for ABC Company. The model provides a clear
way to evaluate every criterion, depending on its importance in order to select the
right supplier. To reduce the time and effort in selecting a supplier, a multi-criteria
decision model is used for evaluation and selection of suppliers with the
proposed AHP model by scoring the performance of suppliers. Choosing the right
supplier could give the right quantity and the right cost on the right timeline.
Description
Date
2011-12-16