PRACTICAL APPLICATION OF THE ANALYTIC HIERARCHY PROCESS ON SUPPLIER SELECTION PROBLEM
PRACTICAL APPLICATION OF THE ANALYTIC HIERARCHY PROCESS ON SUPPLIER SELECTION PROBLEM

Summary/Abstract: This article deals with multi-criteria decision making. The first part of the article consists of the theoretical familiarization with the decision of supplier selection. Following this is a description of the mathematical definition of the Analytic Hierarchy Process (AHP) method. The article focuses on supplier selection based on assessment criteria using the AHP method. The AHP has been applied to the problem of selecting a particular supplier for a windows glazing company. Criteria have been determined and match paired by using Saaty’s scoring scale. The values determined for pairwise comparisons have subsequently been imported into a software tool for the multi-criteria decision making method AHP - Make It Rational. The weights of individual criteria have been detected by this software tool. The actual values of each criterion have been normalized using the Euclidean metric. The output is the final selection of the optimal supplier according to specified criteria.

• Details
• Contents