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Proposed Method for Supplier Selection

Author

Listed:
  • Agus Ristono

    (Industrial Engineering Department, UPN "Veteran" Yogyakarta, Indonesia)

  • Tri Wahyuningsih

    (Management Department, UPN "Veteran" Yogyakarta, Indonesia)

  • Eko Junianto

    (Post Graduate Student, Industrial Engineering Department, UPN "Veteran" Yogyakarta, Indonesia)

Abstract

The use of the Analytical Hierarchy Process (AHP) is frequent in supplier selection. First, AHP is a pairwise comparison between criteria. If the pairwise comparisons are inconsistent, the result is invalid. Thus, the process of comparing criteria must be repeated continuously until valid results are obtained. This process takes time and costs so it is considered inefficient. This research proposes the application of the Hamilton chain process into the pairwise comparison matrix. One criterion is symbolized as a knot, while the arc is symbolized as the pairwise comparison value between the two nodes or the connected criterion. In the network model of the AHP method, each node is connected to all other nodes without exception. Whereas in the proposed method, each criterion or node is compared only once. That said, avoiding inconsistencies can be made. The consistency ratio result of the proposed method is found to be consistent.

Suggested Citation

  • Agus Ristono & Tri Wahyuningsih & Eko Junianto, 2020. "Proposed Method for Supplier Selection," Technium Social Sciences Journal, Technium Science, vol. 13(1), pages 376-394, November.
    • Handle: RePEc:tec:journl:v:13:y:2020:i:1:p:376-394
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    References listed on IDEAS

    as
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    3. Saaty, Thomas L., 2006. "Rank from comparisons and from ratings in the analytic hierarchy/network processes," European Journal of Operational Research, Elsevier, vol. 168(2), pages 557-570, January.
    4. Saaty, Thomas L., 1990. "How to make a decision: The analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 48(1), pages 9-26, September.
    5. Seyedmohsen Hosseini & Abdullah Al Khaled, 2019. "A hybrid ensemble and AHP approach for resilient supplier selection," Journal of Intelligent Manufacturing, Springer, vol. 30(1), pages 207-228, January.
    6. Maria Do Rosário Cabrita & Rita Frade, 2016. "Supplier selection approach: integrating analytic hierarchy process and supplier risk analysis," International Journal of Business and Systems Research, Inderscience Enterprises Ltd, vol. 10(2/3/4), pages 238-261.
    7. Srikanta Routroy & C.V. Sunil Kumar, 2016. "An approach to develop green capability in manufacturing supply chain," International Journal of Process Management and Benchmarking, Inderscience Enterprises Ltd, vol. 6(1), pages 1-28.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Tri Wahyuningsih, 2022. "The application of factor analysis (FA) in evaluating supplier selection criteria in PT. Wijaya Karya Beton Tbk and ranking suppliers using integration of analytical hierarchy process (AHP) and adapti," Technium, Technium Science, vol. 4(6), pages 11-17.

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    More about this item

    Keywords

    Analytical Hierarchy Process (AHP); supplier selection; Hamilton chain; criteria;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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