Multi-criteria supplier selection model using the analytic hierarchy process approach

2016 ◽  
Vol 11 (1) ◽  
pp. 326-354 ◽  
Author(s):  
Vinod Yadav ◽  
Milind Kumar Sharma
Keyword(s):  
Analytic Hierarchy Process ◽  
Automobile Industry ◽  
Supplier Selection ◽  
Selection Process ◽  
Selection Model ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Proposed Model ◽  
Hierarchy Process

Purpose – The purpose of this paper is to propose a supplier selection model for an automobile company using analytic hierarchy process (AHP) approach. Supplier selection is now growing to be an important but complex issue, as it involves a large number of factors and decisions. These factors have complicated operational and financial implications. Design/methodology/approach – A case study of an Indian automobile company is used to illustrate and propose a supplier selection model using AHP approach. Findings – Key criteria of the supplier selection problem are identified based on the literature review and case study. Then, a model is proposed for supplier selection using AHP approach followed by a detailed sensitivity analysis. Practical implications – This paper contributes to supplier selection process, and points out the importance of supplier selection. It proposes a supplier selection model for an automobile industry which often faces heterogeneous supply environments. The proposed model provides key criteria for supplier selection in Indian context. This model may have high acceptability, where a large number of suppliers are available to supply the materials or provide the services. Originality/value – The proposed model can provide guidelines and directions for managers involved in purchasing function to effectively select suppliers on the basis of the identified criteria in the heterogeneous manufacturing environment.

Multi-criteria decision making for supplier selection using fuzzy AHP approach

2015 ◽  
Vol 22 (6) ◽  
pp. 1158-1174 ◽  
Author(s):  
Vinod Yadav ◽  
Milind Kumar Sharma
Keyword(s):  
Decision Making ◽  
Automobile Industry ◽  
Supplier Selection ◽  
Selection Process ◽  
Fuzzy Ahp ◽  
Selection Model ◽  
Multi Criteria Decision Making ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Hierarchy Process

Purpose – The purpose of this paper is to propose a multi-criteria supplier selection model using fuzzy analytical hierarchy process (FAHP) approach for a leading automobile company in India. Design/methodology/approach – FAHP approach followed by a sensitivity analysis has been used. Findings – In this study, a FAHP-based supplier selection model is proposed to provide useful insights in choosing appropriate suppliers in dynamic situations in order to enhance long-term relationship with them. Practical implications – This study proposes a supplier selection model for an automobile industry which often faces heterogeneous supply environments. This model may have a high acceptability where a large number of suppliers are available to supply the materials or provide the services. As analytic hierarchy process is the most widely used methodology for supplier selection, however, it becomes less efficient in case of inconsistencies observed in the data. However a FAHP-based approach may overcome this difficulty. Originality/value – It contributes to supplier selection process and points out the importance of supplier selection problem, especially in the context of multi-criteria decision-making in Indian scenario.

Utilizing analytic hierarchy process for improved decision making within supply chains

2008 ◽  
Vol 27 (1) ◽  
pp. 49-62
Author(s):  
Sameer Kumar ◽  
John Bisson
Keyword(s):  
Analytic Hierarchy Process ◽  
Global Economy ◽  
Supplier Selection ◽  
Selection Process ◽  
Decision Support Tool ◽  
Data Availability ◽  
Analytic Hierarchy ◽  
Support Tool ◽  
Device Manufacturer ◽  
Hierarchy Process

With a growing global economy and competition and increased outsourcing, the supplier selection process has gained more focus and importance within many business enterprises for developing an integrated supply network. Analytic Hierarchy Process (AHP) has been identified as an ideal multi-objective decision support tool to assist firms in completing the supplier selection process as part of strengthening their procurement strategies. This paper involved secondary research methods to gain an understanding of AHP, its various applications, and exploration of how to incorporate non-traditional selection criteria such as environmental criterion into the process. AHP's application for optimal supplier selection to support integrated procurement process is illustrated through an example of a Medical Device Manufacturer (MDM), known for established supplier-customer partnerships and alliances. Major limitation in studying this example included data availability to complete a comprehensive AHP decision management model. However, it was found that AHP is a powerful, structured but flexible method of addressing the multi-criteria supplier selection decision that facilitates building an integrated supply chain.

scholarly journals Multi-criteria supplier selection using fuzzy analytic hierarchy process: case study from a Brazilian railway operator

2017 ◽  
Vol 14 (3) ◽  
pp. 428 ◽  
Author(s):  
Rodrigo Barbosa de Santis ◽  
Leonardo Golliat ◽  
Eduardo Pestana de Aguiar
Keyword(s):  
Supply Chain ◽  
Analytic Hierarchy Process ◽  
Operations Management ◽  
Supplier Selection ◽  
Standard Procedure ◽  
Fuzzy Analytic Hierarchy Process ◽  
Analytic Hierarchy ◽  
And Performance ◽  
Hierarchy Process

The supplier selection problem has been discussed in literature within the supply chain management subject and it is extremely important due to its impact on the entire supply chain configuration, strategy and performance. This work presents a decision model based on the fuzzy analytic hierarchy process method and its application in a real case of maintenance supplier selection in a large Brazilian railway operator. Eight criteria were adopted - technical capacity, financial status, relationship, operations management, security management, infrastructure, historic performance and costs - for evaluating five potential suppliers. In the case study, both first and second ranked suppliers by the method have been selected by the company for providing the services and the model was adopted as a standard procedure within the organization for contracts over US$ 300,000.

Service Supplier Selection using Analytic Hierarchy Process

2016 ◽  
Vol 5 (3) ◽  
Author(s):  
Surajit Bag
Keyword(s):  
Analytic Hierarchy Process ◽  
Supplier Selection ◽  
Selection Criteria ◽  
Selection Process ◽  
Alternative Methods ◽  
Analytic Hierarchy ◽  
Research Directions ◽  
Hierarchy Process

This paper argues the use of Analytic Hierarchy Process in service supplier selection process. The literature has evidence of important criteria for supply supplier selection process. However, there is a dearth of studies on service supplier selection process. To address this gap, this paper firstly systematically reviews the existing procurement literature, secondly, it argues for the use of alternative methods research to address questions related to ranking of selection criteria, and thirdly, it proposes and illustrates the use of Analytic Hierarchy Process to analyze the identified criteria. The paper concludes with limitations and further research directions.

Supporting decision-making in service supplier selection using a hybrid fuzzy extended AHP approach

2017 ◽  
Vol 23 (1) ◽  
pp. 196-222 ◽  
Author(s):  
Giustina Secundo ◽  
Donato Magarielli ◽  
Emilio Esposito ◽  
Giuseppina Passiante
Keyword(s):  
Decision Making ◽  
Analytic Hierarchy Process ◽  
Fuzzy Set ◽  
Supplier Selection ◽  
Hybrid Approach ◽  
High Tech ◽  
Manufacturing Companies ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Hierarchy Process

Purpose Service supplier selection is a multi-criteria decision-making (MCDM) problem assuming a strategic role for the competitiveness of high-tech manufacturing companies. Nevertheless, especially for service quality evaluation, there is little empirical evidence of the practical usefulness of MCDM methodologies. Aiming to cover this gap between theoretical approaches and empirical applications, the purpose of this paper is to propose a fuzzy extended analytic hierarchy process (FEAHP) approach for service supplier evaluation. Design/methodology/approach A hybrid approach which combines some of the strengths of the analytic hierarchy process (AHP) and of the fuzzy set theory is presented, as organized into five steps. A case study is used to evaluate the applicability in a real company context. Findings The usability of the approach is demonstrated in an aerospace company for solving the supplier selection problem of a business software whose applications are still in infancy: a Test Data Management System (TDMS). The illustrative application contains both “general” criteria to be used for other service supplier selection contexts as well as service-specific criteria related to software selection. Research limitations/implications Even if the application regards the selection of a software supplier, the methodology can be generically extended to other services’ selection in complex manufacturing industries through the personalization of some criteria. Practical implications Implications can be derived both for business managers involved into the decision-making process and for suppliers identifying the most promising features of software quality. Originality/value The originality consists in the combination into a hybrid approach of the strong points of the AHP with the fuzzy set; the inclusion of multiple perspectives of decision criteria for service supplier selection, basically the “software product” and “supplier” ones; a real empirical application to test and demonstrate the efficacy and the practical utility of the proposed approach.

scholarly journals Environmental Risk Assessment of Subway Station Construction to Achieve Sustainability Using the Intuitionistic Fuzzy Analytic Hierarchy Process and Set Pair Analysis

2021 ◽  
Vol 2021 ◽  
pp. 1-17
Author(s):  
Junwu Wang ◽  
Sen Liu ◽  
Yinghui Song ◽  
Jing Wang ◽  
Han Wu
Keyword(s):  
Risk Assessment ◽  
Analytic Hierarchy Process ◽  
Environmental Risk ◽  
Environmental Risk Assessment ◽  
Set Pair Analysis ◽  
Analytic Hierarchy ◽  
Proposed Model ◽  
Hierarchy Process ◽  
Pair Analysis

Environmental risks have a significant impact on the sustainability of subway station construction projects. This paper proposes an environmental risk assessment model based on the intuitionistic fuzzy analytic hierarchy process (IFAHP) and set pair analysis (SPA) to deal with the ambiguity and uncertainty in the assessment. An index system for environmental risk assessment is established based on a literature review and the rough set method. Subsequently, the IFAHP is used to calculate the indicator weights to describe the certainty, uncertainty, and hesitation degree of expert decisions in the weighting calculation by means of affiliation, nonaffiliation, and hesitation. Finally, SPA, which can deal with the randomness, uncertainty, and ambiguity of the indicators, is used to assess environmental risk. A case study of two typical stations (Lushan Avenue Station and Huilong Road West Station) of Metro Line 11 in Chengdu, China, is conducted. The case study results are consistent with field surveys. The evaluation results of the proposed model are more objective and reasonable than those of the traditional analytic hierarchy process, the entropy weight method, fuzzy comprehensive evaluation, grey correlation analysis, and technique for order of preference by similarity to an ideal solution (TOPSIS). The research results prove the scientific validity and superiority of the proposed model.

scholarly journals INTEGRASI ANALYTIC HIERARCHY PROCESS DAN GOAL PROGRAMMING DALAM PEMILIHAN PEMASOK

2014 ◽  
Vol 14 (2) ◽  
pp. 192
Author(s):  
Annisa Kesy Garside ◽  
Martina Juan
Keyword(s):  
Analytic Hierarchy Process ◽  
Goal Programming ◽  
Supplier Selection ◽  
Programming Model ◽  
Selection Process ◽  
Raw Material ◽  
Objective Functions ◽  
Analytic Hierarchy ◽  
Goal Programming Model ◽  
Hierarchy Process

Annisa Kesy Garside dan Martina JuanKristiandyRISTIANDYJurusan Teknik Industri, Universitas Muhammadiyah MalangJl. Raya Tlogomas 246 Malang 65144 Jawa TimurLaman: [email protected], [email protected] pemasok menjadi pertimbangan penting untuk meningkatkan efisiensi bagian pengadaan bahan baku mengingat biaya material dapat mencapai 70% dari biaya produk. Pemilihan pemasok seringkali merupakan permasalahan multi kriteria yang melibatkan faktor kualitatif dan kuantitatif. UD Virgo Snack Bersinar merupakan perusahaan pembuat keripik buah-buahan yang berlokasi di Malang. Perusahaan sering mengalami kekurangan pasokan buah nangka yang mengganggu jalannya proses produksi, sehingga perlu dilakukan pemilihan pemasok buah nangka secara selektif dengan mempertimbangkan kriteria-kriteria yang ditetapkan oleh perusahaan dan pengalokasian pesanan kepada supplier terpilih. Pada penelitian ini akan mengintegrasikan bobot pemasok dari hasil Analytic Hierarchy Process dengan model � PreemptiveGoalProgramminguntukmenentukanprioritasdankuantitaspesananPreemptive Goal Programming untukmenentukanprioritasdankuantitaspesanan untuk menentukan prioritas dan kuantitas pesanan kepada pemasok. Model diformulasikan untuk mencapai dua fungsi tujuan yaitu maksimasi total nilai pembelian dan minimasi total biaya pembelian serta mempertimbangkan batasan kapasitas pemasok dan pemenuhan kebutuhan buah nangka. Dari hasil running model goal programming diperoleh supplier dari Semarang akan memasok buah nangka sebanyak 7,5 ton pada periode November 2013 – Januari 2014 dan kekurangan pasokan untuk menutupi kebutuhan buah nangka dipasok oleh supplier dari Tajinan.Kata kunci: buah nangka, pemasok, bobot pemasok, goal programming, analytic hierarchy processABSTRACTConsidering that raw material cost could reach 70% of product cost, supplier selection process was become important consideration to improve the efficiency of procurement department. The supplier selection process was multi-criteria problem involving qualitative and quantitative factors. UD Virgo Bersinar was one of fruit chips manufacturer located in Malang. The company often experienced shortage of jackfruits which interrupt production process. Thus, it was necessary to choose its supplier by considering company’s criteria and order allocation of selected supplier. This research would integrate supplier weight from Analytic Hierarchy Process and Preemptive Goal Programming model to determine priority of supplier and order quantity to the supplier. The model was formulated to achieve two objective functions, namely maximizing total value of purchasing and minimizing total cost of purchasing, by considering capacity of supplier and fulfillment of jackfruit. By running goal programming model, it was concluded that supplier from Semarang would supply 7.5 ton of jackfruit in November 2013-Januari 2014 and deficiency of needs would be supplied by supplier from Tajinan.Keywords: jackfruit, supplier,supplier weight, goal programming, analytic hierarchy process

Dynamic analytic hierarchy process: AHP method adapted to a changing environment

2014 ◽  
Vol 25 (4) ◽  
pp. 457-475 ◽  
Author(s):  
Vicente González-Prida ◽  
Pablo Viveros ◽  
Luis Barberá ◽  
Adolfo Crespo Márquez
Keyword(s):  
Analytic Hierarchy Process ◽  
Good Choice ◽  
Ahp Method ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Dynamic View ◽  
Comprehensive Picture ◽  
Hierarchy Process ◽  
Critical Aspects

Purpose – Actual situations evidence how adopted decisions can change the decision constraints of the system where the analytic hierarchy process (AHP) is being applied. Therefore, the purpose of this paper is to provide a dynamic view of the AHP method, considering the criteria and alternatives as temporary variables and finally obtaining not only one good choice for a specific moment but a more comprehensive picture of those alternatives resulting more important for the business, according to strategy and over time. Design/methodology/approach – With this purpose this paper starts with a short literature review and the general characteristics of the AHP method. Afterwards, the paper presents the problem that appears frequently in actual situations which justify the development of this research. Once described, the uncertainty appeared after the AHP implementation, the proposed methodology called dynamic analytic hierarchy process (DAHP) is presented. Findings – Finally, this paper shows a case study and concludes with the main points of the research suggesting applications and further extensions. Originality/value – The value of this paper is the description of a DAHP as a tool that can facilitate decision making related to some of the critical aspects in maintenance or post-sales area, permitting the alignment of actions with the business’ objectives.

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