AN INTEGRATED STRATEGIC APPROACH TO SUPPLIER EVALUATION AND SELECTION

Author(s):  
REZA KHORRAMSHAHGOL

This paper, using goal programming (GP) and the analytic hierarchy process (AHP), proposes an integrated methodology to aid decision makers in (1) evaluating, screening and selecting best suppliers from among an exhaustive list of available suppliers and (2) determining the amount to be purchased from the selected suppliers. Along the supply chain, the suppliers, by being situated at the upstream of the chain, play a crucial role in successful management of the entire (subsequent) members of the chain and can have a significant impact on the efficiency and effectiveness of the activities of the rest of the chain, and ultimately, on the delivery of the desired products/services. Thus supplier selection can certainly contribute greatly to a firm's competitive advantage and its organizational success. This study suggests a screening and evaluation method, named supplier priority index matrix, to eliminate the least qualified suppliers and to choose the most promising ones. The remaining potential suppliers are evaluated and the best are selected from among them. Finally the AHP and GP are used to allocate the firm's total supplies among the chosen/selected suppliers.

Author(s):  
Yuan Mao Huang ◽  
Hsin-Ni Ho

Applications of the analytic hierarchy process have been widespread in the field of decision-making for decades. In this process, decision-makers perform pairwise comparisons to form a judgment matrix, and its principal eigenvector is used to represent the priorities. Thus it is important to evaluate the degree of inconsistency in a judgment matrix to ensure the principal eigenvector reflects the true priorities among the alternatives. This study proposes the I3 circuit method, which is based on the graph theory, with a critical inconsistent index value of 3.75 to judge and evaluate consistency or the degree of inconsistency for judgment matrices. In addition, it can also spot the matrix entries that create the most inconsistency. With these advantages of the proposed method, decision-makers can easily evaluate the pairwise comparisons of a matrix and revise some entries of the matrix toward consistency if needed.


2015 ◽  
Vol 4 (1and2) ◽  
Author(s):  
Rajeev Dhingra ◽  
Preetvanti Singh

Decision problems are usually complex and involve evaluation of several conflicting criteria (parameters). Multi Criteria Decision Making (MCDM) is a promising field that considers the parallel influence of all criteria and aims at helping decision makers in expressing their preferences, over a set of predefined alternatives, on the basis of criteria (parameters) that are contradictory in nature. The Analytic Hierarchy Process (AHP) is a useful and widespread MCDM tool for solving such type of problems, as it allows the incorporation of conflicting objectives and decision makers preferences in the decision making. The AHP utilizes the concept of pair wise comparison to find the order of criteria (parameters) and alternatives. The comparison in a pairwise manner becomes quite tedious and complex for problems having eight alternatives or more, thereby, limiting the application of AHP. This paper presents a soft hierarchical process approach based on soft set decision making which eliminates the least promising candidate alternatives and selects the optimum(potential) ones that results in the significant reduction in the number of pairwise comparisons necessary for the selection of the best alternative using AHP, giving the approach a more realistic view. A supplier selection problem is used to illustrate the proposed approach.


2021 ◽  
Vol 11 (4) ◽  
pp. 1660 ◽  
Author(s):  
Ivan Marović ◽  
Monika Perić ◽  
Tomaš Hanak

A way to minimize uncertainty and achieve the best possible project performance in construction project management can be achieved during the procurement process, which involves selecting an optimal contractor according to “the most economically advantageous tender.” As resources are limited, decision-makers are often pulled apart by conflicting demands coming from various stakeholders. The challenge of addressing them at the same time can be modelled as a multi-criteria decision-making problem. The aim of this paper is to show that the analytic hierarchy process (AHP) together with PROMETHEE could cope with such a problem. As a result of their synergy, a decision support concept for selecting the optimal contractor (DSC-CONT) is proposed that: (a) allows the incorporation of opposing stakeholders’ demands; (b) increases the transparency of decision-making and the consistency of the decision-making process; (c) enhances the legitimacy of the final outcome; and (d) is a scientific approach with great potential for application to similar decision-making problems where sustainable decisions are needed.


Author(s):  
Yonghong Yang ◽  
Yu Chen ◽  
Zude Tang

Increasing traffic volume and insufficient road lanes often require municipal roads to be reconstructed and expanded. Where a road passes under a bridge, the reconstruction and expansion project will inevitably have an impact on the bridge. To evaluate the safety impact of road engineering projects on bridges, this paper evaluates the safety of the roads and ancillary facilities of highway bridges involved in municipal road engineering projects. Based on a comprehensive analysis of the safety factors of municipal roads undercrossing existing bridges, a fuzzy comprehensive analytic hierarchy process (AHP) evaluation method for the influence of road construction on the safety of existing bridges is proposed. First, AHP is used to select 11 evaluation factors. Second, the target layer, criterion layer, and index layer of evaluation factors are established, then a safety evaluation factor system is formed. The three-scale AHP model is used to determine the weight of assessment indexes. Third, through the fuzzy comprehensive AHP evaluation model, the fuzzy hierarchical comprehensive evaluation is carried out for the safety assessment index system. Finally, the fuzzy comprehensive evaluation method is applied to the engineering example of a municipal road undercrossing an existing expressway bridge. The comprehensive safety evaluation of the existing bridge reflects the practicability and feasibility of the method. It is expected that, with further development, the method will improve the decision-making process in bridge safety assessment systems.


2016 ◽  
Vol 8 (5) ◽  
pp. 81
Author(s):  
Farzana Elahi ◽  
Shamsad Ahmed ◽  
Mahbubul Haque ◽  
Nazreen Chowdhury

<p class="Default">In order to sustain in a competitive market like pharmaceutical in Bangladesh, it is important to get an insight into physicians’ preferences in prescribing the drugs. The aim of this work is to investigate and address the physician requirements through an integrated methodology of Analytic Hierarchy Process (AHP) and Quality Function Deployment (QFD). In this research, an expert panel has been interviewed to recognize the criteria affecting physicians’ decisions. The results from AHP derived through Expert Choice software demonstrate that from the viewpoint of physicians, out of the five criteria, quality of product offering is ranked highest in prescribing the drugs followed by the reputation of the company, relationship enjoyed with the company, etc. As for the technical aspects, derived from the relationship matrix of AHP and QFD, out of the sixteen, brand image is ranked first followed by the quality of raw and packaging materials, skilled production personnel etc. The contribution of this research is expected to enable the managers in the pharmaceutical companies to recognize the factors that influence physicians in prescribing drugs for the patients and help them find out challenging items with preeminent alternatives. Few suggestions for future research are also put forward. <strong></strong></p>


2014 ◽  
Vol 541-542 ◽  
pp. 966-971
Author(s):  
Xiang Feng Zhang ◽  
Tian Yu Liu ◽  
Bin Jiao

The construction of wind farms grows quickly in China. It is necessary for stakeholders to estimate investment costs and to make good decisions about a wind power project by making a budget for the investment. This paper proposed an evaluation method by integrating the analytic hierarchy process (AHP) with back-propagation neural network (BPNN) to evaluate wind farm investment. In the AHP-BPNN model, the AHP method is used to determine the factors of wind farm investment. The factors with high importance are reserved while those with low importance are eliminated, which can decrease the number of inputs of the BPNN. The experiment results show that the integrated model is feasible and effective.


2013 ◽  
Vol 353-356 ◽  
pp. 384-387 ◽  
Author(s):  
Mu Dan Guo ◽  
Fu Sheng Zhu ◽  
Shu Hong Wang ◽  
Xi Jiang Mu

Study of mechanical characteristics of structural planes has been significant issue in engineering rock mass stability analysis. The factors that affect the mechanical behavior of structural planes are so complicated that it is quite essential to take an efficient method to quantificationally analyze these factors. Based on the basic principals of analytic hierarchy process (AHP), a structural plane classification method-CSPC method is proposed. It can conduct weight distribution in terms of the complicated factors, assess the structural planes comprehensively and also forecast the planes intensity parameters semiquantitatively. The classification and forecast parameters of structural planes appropriately fit the cases in engineering. Furthermore, the method is easy to master for the engineers and the application can be of great prospect.


2017 ◽  
Vol 21 (3) ◽  
pp. 318-329 ◽  
Author(s):  
Zenonas TURSKIS ◽  
Zydrune MORKUNAITE ◽  
Vladislavas KUTUT

Cultural heritage item preservation, renovation and adaptation to the social needs of people, as well as their passing from generation to generation, is a problem relevant from economic, historical, archeological, religious, technological, research and other perspectives. They are typical strategic multi-criteria decision-making problems. The state institutions and the owners and managers of the heritage items invest in their preservation. In fact, every country has a great number of the registered heritage structures. To ensure their effective management and renovation, a lot of implementation projects and strategies should be developed and evaluated. This work requires large investments and time. The paper presents a hybrid model developed for ranking the heritage buildings intended for renovation according to their value. The model for problem solution based on integrated using two MCDM methods Analytic Hierarchy Process and EDAS. A set of the criteria for evaluating the projects, concerning the renovation of cultural heritage items defined.


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