Supplier Selection Using Analytic Hierarchy Process

Evaluation and selection of vendors/suppliers is one of the most complicated and critical function among the business processes. Provision of materials and services in most organizations has been handled by procurement departments which are responsible for evaluation and selection vendor process. Decision makers/managers are usually face challenges to make the right decisions about choosing the best supplier among candidates. This paper identifies and applies Analytic Hierarchy Process (AHP) model to assist in the decision making activity and provides a robust tool of supporting decision makers/managers in vendor selection problem. The case study shows the ability of AHP model in supporting the decision making process of vendor selection in the real business world. The final result of applying AHP model illustrates the right decision that should be taken by decision makers/managers in a form of suppliers’ scores list and definitely the highest score indicates the best vendor/supplier to be selected.