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.

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.

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.

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

scholarly journals A DECISION SUPPORT TOOL FOR BUSINESS MODEL ANALYSIS

2018 ◽  
Vol 10 (2) ◽  
Author(s):  
Antonio Giuseppe Latora ◽  
Lucio Compagno ◽  
Natalia Trapani
Keyword(s):  
Decision Support ◽  
Analytic Hierarchy Process ◽  
Business Model ◽  
Decision Support Tool ◽  
Quantitative Methodology ◽  
Analytic Hierarchy ◽  
Business World ◽  
Support Tool ◽  
Product Service ◽  
Hierarchy Process

The business model (BM) concept which has emerged in the scientific literature and business world over the past fifteen years is a new management concept that, although characterised by fuzzy boundaries, can be synthesized as “the rationale of how an organisation creates, delivers and captures value”. Many authors see the BM as an excellent tool for the strategic evaluation of business ideas, but the literature review shows a lack of efficient quali-quantitative tools for evaluating potential BM alternatives and selecting the best BM solution from among them. In this paper, we propose a Business Model Decision Support Tool (BM-DST) based on a quali-quantitative methodology of Multiple Criteria Decision Analysis (MCDA) called Analytic Hierarchy Process (AHP) and specifically based on a modified AHP procedure called Value-Analytic Hierarchy Process (V-AHP). A case study with a numerical example was carried out in the field of industrial plants, specifically in the context of the Industrial Product-Service Systems, in order to select the best BM solution from among three potential BM alternatives usually taken into account by an Original Equipment Manufacturer (OEM) and Engineering-Procurement- Construction (EPC) company: Transactional Project Deliveries, Project Led Solutions and Life-Cycle Solutions.

scholarly journals Morphometric parameters based prioritization of a Mid-Himalayan watershed using fuzzy analytic hierarchy process

2021 ◽  
Vol 280 ◽  
pp. 10004
Author(s):  
Mallika Joshi ◽  
Pankaj Kumar ◽  
Purabi Sarkar
Keyword(s):  
Analytic Hierarchy Process ◽  
Pairwise Comparison ◽  
Decision Support Tool ◽  
Morphometric Parameters ◽  
Fuzzy Analytic Hierarchy Process ◽  
Analytic Hierarchy ◽  
Pairwise Comparison Matrix ◽  
Support Tool ◽  
The Matrix ◽  
Hierarchy Process

Watershed prioritization has become increasingly crucial for managing natural resources, especially the watersheds. A useful decision support tool to provide appropriate weights to different morphological attributes with lineage with soil erosion is required to identify environmentally stressed areas for the watershed resources. This study examines the Western Nayar watershed delineation and further examination of the watershed’s morphometric parameters. The morphometric parameters were quantified under the linear, areal, and relief heads for the watershed. The prioritization of sub-watersheds was done by the fuzzy analytic hierarchy process (FAHP). The study included nine morphometric parameters for forming a pairwise comparison matrix. The fuzzy analytic hierarchy process was employed for assigning the suitable weights to morphometric parameters, and further, these weights are normalized to assign the final ranks to the sub-watershed. In Western Nayar, SW9 got the highest priority, and SW1 was categorized as the least priority. The results were validated by the consistency ratio index, which depends on the matrix consistency index’s size that should be less than 10%. The consistency index of the present study was found to be 2%.

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