A REVIEW OF SUPPLIER SELECTION METHODS IN MANUFACTURING INDUSTRIES

Farzad  Tahriri; Mohammad  Rasid Osman; Aidy  Ali; Rosnah  Mohd Yusuff

Authors

Farzad Tahriri Department of Mechanical and Manufacturing Engineering, University of Putra Malaysia, 43400 Serdang, Selangor, Malaysia
Mohammad Rasid Osman Department of Mechanical and Manufacturing Engineering, University of Putra Malaysia, 43400 Serdang, Selangor, Malaysia
Aidy Ali Department of Mechanical and Manufacturing Engineering, University of Putra Malaysia, 43400 Serdang, Selangor, Malaysia
Rosnah Mohd Yusuff Department of Mechanical and Manufacturing Engineering, University of Putra Malaysia, 43400 Serdang, Selangor, Malaysia

Keywords:

Analytic Hierarchy Process (AHP), supplier selection, qualitative and quantitative criteria

Abstract

In today’s highly competitive environment, an effective supplier selection process is very important tothe success of any manufacturing organization. In this context, supplier selection represents one of themost important functions to be performed by the purchasing department. Supplier selection is amulti-criterion problem which includes both qualitative and quantitative factors (criteria). A trade-offbetween these tangible and intangible factors is essential in selecting the best supplier. A number ofmodels and techniques have been developed to deal with selecting and evaluating suppliers. In thispaper, different selection methods concerning supplier selection are discussed and the advantages anddisadvantages of selection methods, especially the Analytic Hierarchy Process (AHP), are illustratedand compared.

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