A dynamic decision approach for long-term vendor selection based on AHP and BSC

Abstract

For solving the dynamic condition problem of vendor selection, the analytic hierarchy process method is modified to a dynamic approach in the period of analytic cycle. The balanced scorecard is used to define the 4 major frameworks of supplier selection including customers, financial, internal business processes, and innovation and learning. The 16 attributes are extended from major frameworks. The main character of proposed method is the scores of attributes and alternatives from the estimation of commander's trade-off can be changed in time axis under the changeable and conjecturable business environments. In case study, the advantage and limit of the model are illustrated. © Springer-Verlag Berlin Heidelberg 2005.