An AHP application in vendor selection

Ozden Bayazit
Central Washington University
United States
Birsen Karpak
Youngstown State University
United States

Publication date: Jul, 2005

Journal: ISAHP 2005

Publisher: Creative Decisions Foundation

Abstract: Supplier selection is one of the most crucial activities performed by the organizations because of its strategic importance. A supplier selection problem is a multi- objective problem involving both quantitative and qualitative criteria. Over the years a number of quantitative approaches have been applied to supplier selection problems. Although the Analytic Hierarchy Process (AHP) has previously been implemented in supplier selection problems, in this paper for the first time a comprehensive application of AHP for a real-world case is presented along with sensitivity analysis to choose the best supplier. We proposed an AHP model to choose the best supplier and place the order quantities among them for a construction company.

Keywords: Vendo selection, Multicriteria decision making, AHP