Supplier Selection in Dynamic Environment using Analytic Hierarchy Process

Abstract

In today's highly competitive business environment, the rapidly changing customer demands and with the advent of enterprise wide information systems, the managers are bound to think beyond the conventional business processes and devise new ways to squeeze out costs and improve the performance without compromising on the quality at the same time. Supplier evaluation and selection is one such area which determines the success of any manufacturing firm. Supplier selection is the problem wherein the company decides which vendor to select to have that strategic and operational advantage of meeting the customers' varying demands and fight the fierce competition. This paper presents a simple model based on Analytic Hierarchy Process (AHP) to help decision makers in supplier evaluation and selection, taking into account the firm's requirements. The article is intended to help new scholars and researchers understand the AHP model and see different facets in first sight.