Integrated analytic hierarchy process and preference ranking organization method for enrichment evaluation II for supplier selection

Abstract

Supplier selection serves as the most critical factor in the supply chain, which involves several criteria. The selection of the right supplier supports the company's competition. To support the right decision-making, a credible and practical decision-making method is thus required. This study aims to integrate the Analytic Hierarchy Process (AHP) and PROMETHEE II methods for supplier selection. In utilizing this method, AHP is utilized to determine the weight of each criterion, and PROMETHEE II is employed to determine supplier ranking. The case study was conducted in the wood processing industry, involving the ten criteria applied in supplier selection. Furthermore, the three suppliers are ranked according to the PROMETHEE II method, indicating that A1 is ranked first with a net flow value of 0.1850.