Using analytic network process in a group decision-making for supplier selection

Abstract

Nowadays most required products and services of companies are provided through other organisations. Outsourcing as a new approach has a significant role in management literature. Supplier should be selected by executives, when the organization decides to acquire a product or service from other organizations. Concerning supplier selection, the managers should consider more than one factor or criterion, which may be inconsistent and contradictory. Therefore, supplier selection is a multi-criteria decision-making issue. Analytic network process (ANP) is a technique to solve multi-criteria decision-making problems in which the criteria affect each other and have nonlinear correlation. In this study, the goal is to use ANP to select the supplier in a group decision-making. © 2012 Vilnius Universit.