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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| Main Authors: | , |
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| Format: | Conference or Workshop Item |
| Published: |
2014
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| 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. |
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