Analytic Hierarchy Process Applied to Supply Chain Management

Abstract

Resource allocation (RA) and supplier selection (SS) are two major decision problems regarding supply chain management (SCM). A supply chain manager may solve these problems by considering a single criterion, for instance, costs, customer satisfaction, or delivery time. Applying analytic hierarchy process (AHP), the supply chain manager may combine such criteria to enhance a compromised solution. This chapter presents AHP applications to solve two real SCM problems faced by Brazilian companies: one problem regarding the RA in the automotive industry and another one to SS in a chemical corporation.