An Integrated Approach for Supplier Evaluation and Selection using the Delphi Method and Analytic Hierarchy Process (AHP): A New Framework

Abstract

Supplier selection is one of the most critical processes in supply chain management (SCM). Most small and medium enterprises (SMEs) face difficulties choosing the best supplier using conventional methods. A hybrid multi-criteria decision-making (MCDM) approach is proposed in supplier selection. This proposed framework integrates the Delphi technique as a data-gathering tool and Analytic Hierarchy Process (AHP) as the MCDM methodology for data analysis; both were used to select an effective supplier. This project applies the Delphi technique, allows experts to select the main criteria, and compares the trade-offs between the available alternatives depending on the main criteria. The criteria selected were price, delivery time, online ranking, rejection rate, and flexibility. Using the AHP approach, the criteria's weights were then assigned. The highest was for the price (43.84%), followed by the rejection rate (21.81%), online ranking (19.27%), delivery time (9.44%), and flexibility (5.64%). Lastly, a new framework was suggested using the weighted criteria collection for supplier selection.