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

Ramlan, Rohaizan and Lee, Wen Qiang (2014) An analytic hierarchy process approach for supplier selection: a case study. In: 3rd International Conference on Global Optimization and Its Application (ICoGOIA 2014), 9-12 September 2014, Yogyakarta, Indonesia.

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Abstract

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.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: analytic hierarchy process (AHP); supplier selection
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Technology Management and Business > Department of Production and Operation Management
Depositing User: Normajihan Abd. Rahman
Date Deposited: 24 Jul 2016 08:03
Last Modified: 24 Jul 2016 08:03
URI: http://eprints.uthm.edu.my/id/eprint/8198
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