IDEAS home Printed from https://ideas.repec.org/a/ers/journl/vxxvy2022i3p430-440.html
   My bibliography  Save this article

Using the Analytic Hierarchy Process Method to Select the Best Supplies: A Case Study of a Production Company

Author

Listed:
  • Karolina Gwarda

Abstract

Purpose: The aim of the article is the practical implementation of the Analytic Hierarchy Process (AHP) method to select the optimal raw-material supplier in a selected company, along with the definition of a set of criteria required to evaluate each of them. Design/Methodology/Approach: The article uses the Analytic Hierarchy Process method, which accounts for both quantitative and quantitative aspects. The source of the data used in the analysis was data provided by the surveyed entity and free-form interviews with the employees. Findings: The research clearly shows which supplier best meets the criteria outlined by the company. Practical Implications: Regardless of industry and company size, selecting using the AHP method to select suppliers allows for making decisions based on several criteria whose correlation is preference-adjusted. Originality/Value: The value of this article is its universality and practical application. The subject of the article is very current and fits in the current trend of seeking suppliers with whom to establish a long-term cooperation and forge a permanent link of the supply chain.

Suggested Citation

  • Karolina Gwarda, 2022. "Using the Analytic Hierarchy Process Method to Select the Best Supplies: A Case Study of a Production Company," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 430-440.
    • Handle: RePEc:ers:journl:v:xxv:y:2022:i:3:p:430-440
    as

    Download full text from publisher

    File URL: https://ersj.eu/journal/3040/download
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zeger Degraeve & Filip Roodhooft, 2000. "A Mathematical Programming Approach for Procurement Using Activity Based Costing," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(1&2), pages 69-98.
    2. Zeger Degraeve & Filip Roodhooft, 2000. "A Mathematical Programming Approach for Procurement Using Activity Based Costing," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 27(1‐2), pages 69-98, January.
    3. Chen, Chen-Tung & Lin, Ching-Torng & Huang, Sue-Fn, 2006. "A fuzzy approach for supplier evaluation and selection in supply chain management," International Journal of Production Economics, Elsevier, vol. 102(2), pages 289-301, August.
    4. Ho, William & Xu, Xiaowei & Dey, Prasanta K., 2010. "Multi-criteria decision making approaches for supplier evaluation and selection: A literature review," European Journal of Operational Research, Elsevier, vol. 202(1), pages 16-24, April.
    5. Pankaj Dutta & Bharath Jaikumar & Manpreet Singh Arora, 2022. "Applications of data envelopment analysis in supplier selection between 2000 and 2020: a literature review," Annals of Operations Research, Springer, vol. 315(2), pages 1399-1454, August.
    6. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. García Alcaraz Jorge Luis & Alvarado Iniesta Alejandro & Maldonado Macías Aidé Araceli, 2013. "Selección de proveedores basada en análisis dimensional," Contaduría y Administración, Accounting and Management, vol. 58(3), pages 249-278, julio-sep.
    2. Ekici, Ali, 2013. "An improved model for supplier selection under capacity constraint and multiple criteria," International Journal of Production Economics, Elsevier, vol. 141(2), pages 574-581.
    3. Hashemi, Seyed Hamid & Karimi, Amir & Tavana, Madjid, 2015. "An integrated green supplier selection approach with analytic network process and improved Grey relational analysis," International Journal of Production Economics, Elsevier, vol. 159(C), pages 178-191.
    4. Visani, Franco & Barbieri, Paolo & Di Lascio, F. Marta L. & Raffoni, Anna & Vigo, Daniele, 2016. "Supplier’s total cost of ownership evaluation: a data envelopment analysis approach," Omega, Elsevier, vol. 61(C), pages 141-154.
    5. Scott, James & Ho, William & Dey, Prasanta K. & Talluri, Srinivas, 2015. "A decision support system for supplier selection and order allocation in stochastic, multi-stakeholder and multi-criteria environments," International Journal of Production Economics, Elsevier, vol. 166(C), pages 226-237.
    6. Pishchulov, Grigory & Trautrims, Alexander & Chesney, Thomas & Gold, Stefan & Schwab, Leila, 2019. "The Voting Analytic Hierarchy Process revisited: A revised method with application to sustainable supplier selection," International Journal of Production Economics, Elsevier, vol. 211(C), pages 166-179.
    7. Alaa Alden Al Mohamed & Sobhi Al Mohamed, 2023. "Application of fuzzy group decision-making selecting green supplier: a case study of the manufacture of natural laurel soap," Future Business Journal, Springer, vol. 9(1), pages 1-20, December.
    8. Zhu, Bin & Xu, Zeshui, 2014. "Stochastic preference analysis in numerical preference relations," European Journal of Operational Research, Elsevier, vol. 237(2), pages 628-633.
    9. Rihab Khemiri & Khaoula Elbedoui-Maktouf & Bernard Grabot & Belhassen Zouari, 2017. "A fuzzy multi-criteria decision making approach for managing performance and risk in integrated procurement-production planning," Post-Print hal-01758604, HAL.
    10. Imane Tronnebati & Manal El Yadari & Fouad Jawab, 2022. "A Review of Green Supplier Evaluation and Selection Issues Using MCDM, MP and AI Models," Sustainability, MDPI, vol. 14(24), pages 1-22, December.
    11. Bottani, Eleonora & Rizzi, Antonio, 2008. "An adapted multi-criteria approach to suppliers and products selection--An application oriented to lead-time reduction," International Journal of Production Economics, Elsevier, vol. 111(2), pages 763-781, February.
    12. Z Degraeve & F Roodhooft & B van Doveren, 2005. "The use of total cost of ownership for strategic procurement: a company-wide management information system," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(1), pages 51-59, January.
    13. Liao, Zhiying & Rittscher, Jens, 2007. "Integration of supplier selection, procurement lot sizing and carrier selection under dynamic demand conditions," International Journal of Production Economics, Elsevier, vol. 107(2), pages 502-510, June.
    14. Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    15. Aly Owida & P.J. Byrne & Cathal Heavey & Paul Blake & Khaled S. El-Kilany, 2016. "A simulation based continuous improvement approach for manufacturing based field repair service contracting," International Journal of Production Research, Taylor & Francis Journals, vol. 54(21), pages 6458-6477, November.
    16. Hosseininasab, Amin & Ahmadi, Abbas, 2015. "Selecting a supplier portfolio with value, development, and risk consideration," European Journal of Operational Research, Elsevier, vol. 245(1), pages 146-156.
    17. Devesh Kumar & Gunjan Soni & Rohit Joshi & Vipul Jain & Amrik Sohal, 2022. "Modelling supply chain viability during COVID-19 disruption: A case of an Indian automobile manufacturing supply chain," Operations Management Research, Springer, vol. 15(3), pages 1224-1240, December.
    18. Ali Ekici & Baṣak Altan & Okan Örsan Özener, 2016. "Pricing decisions in a strategic single retailer/dual suppliers setting under order size constraints," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 1887-1898, April.
    19. Baskaran, Venkatesan & Nachiappan, Subramanian & Rahman, Shams, 2012. "Indian textile suppliers' sustainability evaluation using the grey approach," International Journal of Production Economics, Elsevier, vol. 135(2), pages 647-658.
    20. Joris van de Klundert & Jeroen Kuipers & Frits C. R. Spieksma & Maarten Winkels, 2005. "Selecting Telecommunication Carriers to Obtain Volume Discounts," Interfaces, INFORMS, vol. 35(2), pages 124-132, April.

    More about this item

    Keywords

    AHP method; supplier selection.;

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • L99 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Other
    • L83 - Industrial Organization - - Industry Studies: Services - - - Sports; Gambling; Restaurants; Recreation; Tourism
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ers:journl:v:xxv:y:2022:i:3:p:430-440. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Marios Agiomavritis (email available below). General contact details of provider: https://ersj.eu/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.