Analytical hierarchy process - supplier selection, Business Economics

Assignment Help:

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.


Related Discussions:- Analytical hierarchy process - supplier selection

Location decision, what are the steps in location decision.

what are the steps in location decision.

Marginal Analysis, A clinic uses doctors and nurses optimally and is servic...

A clinic uses doctors and nurses optimally and is servicing the maximum number of patients given a limited annual payroll. The last doctor hired treated 1,600 extra patients in a

Scan factors., Assess the current environmental scan factors that are relev...

Assess the current environmental scan factors that are relevant to the decision making process. Determine the factors that will have the greatest impact on plant operations and man

Informal sector, Identify the features of informal sector in African countr...

Identify the features of informal sector in African countries

M & E, CHALLEGES FACING BUSINESS ORGNIZATION

CHALLEGES FACING BUSINESS ORGNIZATION

Population Growth, Explain the notion of the hidden momentum of population ...

Explain the notion of the hidden momentum of population growth. Why is this an important concept for projecting future population trends in different developing nations?

Explain why it is important to plan the design of a website, QUESTION T...

QUESTION The first stage of e-Government involves the creation of a web presence through websites. Discuss the benefits and challenges of a governmental website and explain why

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd