Analytical hierarchy process - supplier selection, Business Economics

Assignment Help:

Analytical Hierarchy Process - Supplier Selection

Supplier selection is a multi-criteria decision-making problem that the selection process mainly involves evaluating a number of suppliers according to a set of common criteria for selecting suppliers to meet business needs. For any manufacturing or service business, selecting the right upstream suppliers is a key success factor that will significantly reduce purchasing cost, increase downstream customer satisfaction, and improve competitive ability. Evaluation criteria may be tangible (measurable) items or intangible (immeasurable) items. Different sets of criteria have been proposed to evaluate suppliers including quality, delivery time, price, quantity history. The case study proposed that price, quality and delivery are the most important criteria for evaluating suppliers in industrial market. This paper develops a supplier selection process, which will be more effective for continual process improvement, and is based on a case study carried out in leading automobile manufacturing company. The Analytical Hierarchy process (AHP) method applied in this case study to develop the effective supplier selection. The Additive Normalization Method and Eigen Vector Method are used as the prioritization methods to determine the priority vector.  The application of AHP can be applied to enhance the decision-making process and reduce the time taken to select a supplier. AHP helps the companies to protect the production line from shortage of raw material.


Related Discussions:- Analytical hierarchy process - supplier selection

General agreement on tariff and trade, Question 1: (a) Explain the cor...

Question 1: (a) Explain the core principles of the General Agreement on Tariff and Trade (GATT). (b) Do you think the additional principles introduced by the WTO in 1995 c

Can less developed countries economies grow, Can less developed countries e...

Can less developed countries economies grow by developing services as tourism? Less developed countries economies grow by developing services as tourism when: The less deve

What are the restrictions of lewis, What are the restrictions of Lewis? ...

What are the restrictions of Lewis? The restrictions of Lewis: • Assumes complete employment in urban regions. Evidence recommend otherwise • Raised profits may be inves

Explain the primary competitors of corporation, 1.) Write a concise one-par...

1.) Write a concise one-paragraph summary (no more than ½ a page!) of the corporation. This would include, for example, its products, its industry, its primary competitors, the exc

Exel, Can you help me with my assingment exael

Can you help me with my assingment exael

Major area of decision making, What are the major area of decision making ?...

What are the major area of decision making ? How does economic theory contribute to managerial decision ?

Discuss the structure conduct performance framework, (a) Describe and discu...

(a) Describe and discuss the Structure Conduct Performance framework (b) The hypotheses of interest in the Structure Conduct Performance framework are as follows: Hypothesi

How is effort monitored onto a project, How is effort monitored onto a proj...

How is effort monitored onto a project? It is significant that the effort to be spent onto activities is reassessed on a regular basis – why is it so very important? Effort is

Demand, The amount of a good or service that a consumer is willing and able...

The amount of a good or service that a consumer is willing and able to buy at each particular price

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd