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

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  • 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
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    References listed on IDEAS

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    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.
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    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

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