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Subcontractor Selection Using Analytic Hierarchy Process

Author

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  • Arikan Kargi , Vesile Sinem

    (Uludag University)

  • Ozturk, Ahmet

    (Uludag University)

Abstract

Turkish textile firms work under a heavily competitive atmosphere in terms of prices due to globalization. Firms have to take into consideration several criteria like cost, quality and delivery-on-time in order to survive the global market conditions and to maintain profitability. To meet these criteria, contractor companies have to select the best subcontractor. Therefore, the selection of subcontractor for the contractor company is a problem. The aim of this study is to solve the problem of Yeşim Textile, a contractor company, about the selection of the best subcontractor for its customer Nike. To solve the problem, firstly, the main criteria and relevant sub-criteria, which are of importance for Yeşim and Nike, were defined. Then, authorities from the firms were interviewed in order to formulate pairwise comparison matrices using the Saaty’s importance scale. In a sense, this matrix is the model of this study. The model, named AHP, was analyzed using the Expert Choice software. Best subcontractors for Yeşim were determined based on the model results. In addition, these results were analyzed for the firm’s decision makers.

Suggested Citation

  • Arikan Kargi , Vesile Sinem & Ozturk, Ahmet, 2012. "Subcontractor Selection Using Analytic Hierarchy Process," Business and Economics Research Journal, Uludag University, Faculty of Economics and Administrative Sciences, vol. 3(3), pages 121-121, July.
    • Handle: RePEc:ris:buecrj:0095
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    More about this item

    Keywords

    Analytical hierarchy process (AHP); Decision making; Multi criteria analysis; Contractor; Subcontractor;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • L29 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Other

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