An Implementation of the AHP Method for Supplier Selection: A Case Study on Thai Auto-Part Factory

摘要

Supplier Selection process has been the successful key of Business Excellence performance and Supply Chain Management in the market competition today. Four criteria (Material Price, Delivery performance, Material Quality, and Company Reliability) and four sub-criteria (Price, On-time delivery, Defect, Capacity) of this process, from 5 literatures, were considered. This paper presented a case study on an implementation of the Analytical Hierarchy Process (AHP) in Thai Auto-Part factory and used the three main steps for finding the optimal solution of Supplier Selection process; Defining the criteria for supplier selection; Calculating the weights of the criteria and the supplier; Validating answer by determining the Consistency Ratio (CR). This Ranking method can be alternatively used as a guideline for SME businesses to evaluate the suppliers' performance and its results were compared with the results of the Expert Evaluating method.