Using the Analytic Hierarchy Process Method to Select the Best Supplies: A Case Study of a Production Company

Abstract

Purpose: The aim of the article is the practical implementation of the Analytic Hierarchy Process (AHP) method to select the optimal raw-material supplier in a selected company, along with the definition of a set of criteria required to evaluate each of them. Design/Methodology/Approach: The article uses the Analytic Hierarchy Process method, which accounts for both quantitative and quantitative aspects. The source of the data used in the analysis was data provided by the surveyed entity and free-form interviews with the employees. Findings: The research clearly shows which supplier best meets the criteria outlined by the company. Practical Implications: Regardless of industry and company size, selecting using the AHP method to select suppliers allows for making decisions based on several criteria whose correlation is preference-adjusted. Originality/Value: The value of this article is its universality and practical application. The subject of the article is very current and fits in the current trend of seeking suppliers with whom to establish a long-term cooperation and forge a permanent link of the supply chain.