INCORPORATING MULTI-CRITERIA CONSIDERATIONS INTO SUPPLIER SELECTION PROBLEM USING ANALYTICAL HIERARCHY PROCESS: A CASE STUDY

Authors : Mehmet Emre  guler, Mehmet Emre Güler

Pages : 1787-1810

View : 14 | Download : 12

Publication Date : 2008-06-01

Article Type : Other

Abstract :Supplier selection is one of the most critical functions for the success of a company competing in contemporary manufacturing industry. Numerous approaches exist in the literature regarding this important decision problem. In this study, Analytic Hierarchy Process is proposed as an effective tool in selecting an optimal supplier among a group of decision alternatives. Suggested methodology is illustrated by a case study.  As far as the requirements of today’s competitive manufacturing environment -such as quality  practices, JIT manufacturing practices, quick response, low cost and flexibility- are  concerned, it is obvious that a company must attain at least a competitive level of the se practices among its rivals, to maintain its market position. The procurement side plays an  important role and the performance of suppliers is crucial in the company’s battle to meet  these requirements.
Keywords : Supplier Selection, Analytical Hierarchy, Process