Comparative Study of Supplier Selection by Using Analytical Hierarchy Process in Supply Chain Management

Hemant Asati; Dr. Pankaj Agarwal; Dharmendra Gour

Volume : V, Issue : I, January - 2016

Comparative Study of Supplier Selection by Using Analytical Hierarchy Process in Supply Chain Management

Hemant Asati, Dr. Pankaj Agarwal, Dharmendra Gour

Abstract :

The success of any manufacturing organization is largely depends on suitable selection of its supplier as it ensures organizations to meet its customer demand within due time. Supplier selection process essentially depends on some important factor such as quality, cost, serviceability, capacity and compliance (CC) and supplier portfolio (SP). All these factors are selected on the basis of their influence on the firm performance and customer satisfaction. So there is a need to develop an approach which integrates all these important factors with their respected weightage. It is a multi–objective problem which is solved with the help of comparative study of supplier selection by using an analytical hierarchy process (AHP) in supply chain management. This paper undertakes a case study on solving the supplier selection process problem in a production firm which requires multiple parts of the final product and the supplier changes time to time because of their dynamic nature.