An analytic hierarchy process approach for supplier selection: a case study

Supplier selection is a complex problem involving qualitative multi-criteria. A trade-off between these tangible and intangible factors is essential in selecting the best supplier. In this study, an AHP-based supplier selection model applied to improve and assist decision making to resolve the suppl...

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Bibliographic Details
Main Authors: Ramlan, Rohaizan, Lee, Wen Qiang
Format: Conference or Workshop Item
Published: 2014
Subjects:
Online Access:http://eprints.uthm.edu.my/8198/
http://eprints.uthm.edu.my/8198/1/8.pdf
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Summary:Supplier selection is a complex problem involving qualitative multi-criteria. A trade-off between these tangible and intangible factors is essential in selecting the best supplier. In this study, an AHP-based supplier selection model applied to improve and assist decision making to resolve the supplier selection problem in choosing the optimal supplier combination. There are four criteria in determining an optimal supplier, which are price, quality, logistic, and service. Information is obtained from the interview, interpreted into simple form and analysed using Microsoft Excel. These data calculated using Pairwise comparison. It is considered to be adequately consistent if the corresponding consistency ratio (CR) is less than 0.1 (<10%) A value of less than 0.1 is good, but the threshold of 0.1 is the rule of thumb. Among three suppliers, supplier C has the highest performance of overall attributes, followed by supplier B and supplier A. Supplier C perform best on two criteria logistic and service, supplier B perform best towards price and supplier A perform best on price.