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The AAPG/Datapages Combined Publications Database
Indonesian Petroleum Association
Abstract
Using Analytic Hierarchy Process for Supplier Selection
Abstract
The supplier selection process is perhaps the most important of the purchasing function. Some of the common and important criteria in the selection of a supplier are quality, price, delivery and service. These evaluation criteria often conflict and it is frequently impossible to find one supplier that excels in all areas. In addition, some of the criteria are quantitative and some are qualitative. Therefore, a methodology is needed that can be used capture both objective and subjective evaluation measures.
The Analytic Hierarchy Process (AHP) is a decision-making method for ranking alternative courses of action when multiple criteria must be considered. This paper will show how AHP can be used to structure the supplier selection process. This method of selection is described, and a detailed hypothetical example of how AHP can be used is also provided.
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