Analytical hierarchy process - supplier selection, Business Economics

Analytical Hierarchy Process - Supplier Selection

Supplier selection is a multi-criteria decision-making problem that the selection process mainly involves evaluating a number of suppliers according to a set of common criteria for selecting suppliers to meet business needs. For any manufacturing or service business, selecting the right upstream suppliers is a key success factor that will significantly reduce purchasing cost, increase downstream customer satisfaction, and improve competitive ability. Evaluation criteria may be tangible (measurable) items or intangible (immeasurable) items. Different sets of criteria have been proposed to evaluate suppliers including quality, delivery time, price, quantity history. The case study proposed that price, quality and delivery are the most important criteria for evaluating suppliers in industrial market. This paper develops a supplier selection process, which will be more effective for continual process improvement, and is based on a case study carried out in leading automobile manufacturing company. The Analytical Hierarchy process (AHP) method applied in this case study to develop the effective supplier selection. The Additive Normalization Method and Eigen Vector Method are used as the prioritization methods to determine the priority vector.  The application of AHP can be applied to enhance the decision-making process and reduce the time taken to select a supplier. AHP helps the companies to protect the production line from shortage of raw material.

Posted Date: 3/5/2013 7:40:40 AM | Location : United States

Related Discussions:- Analytical hierarchy process - supplier selection, Assignment Help, Ask Question on Analytical hierarchy process - supplier selection, Get Answer, Expert's Help, Analytical hierarchy process - supplier selection Discussions

Write discussion on Analytical hierarchy process - supplier selection
Your posts are moderated
Related Questions
What is the Monterrey Consensus? The World Bank estimates aid should increase by $50bn to resource the main aim of the Millennium Development Goals: containing the number of p

Explain about the term underemployment and unemployment rate. Discouraged employees are non-working people who are able of working although are not actively in search of a job.

A. Consider the example of renovating a highway that is in poor shape, with large holes and crumbling shoulders that slow down traffic and pose an accident risk. The costs include

Explain about the influence of warranty and political pressure in IS project. Warranty: When a system is being developed under contract, this frequently carries a warranty

Define the effectiveness of World Bank in promotion of development? The World Bank has a clear set of goals: to assist countries meet the UN Millennium Development Goals. A ma

Prepare an interview plan for the post of Business Analyst in your team. a. Welcome then introductions/administrative objectives/agenda. Found rapport. b. Ask questions conc

how the concept of elasticity used for decision making

Explain about the characteristics required in a risk owner. To be effective within their role, a risk owner’ requirements are as follows: a. Adequate information regarding a