AHP Approach for Supplier Evaluation and Selection in a Pharmaceutical Manufacturing Firm in Ghana

Abstract

In today's highly competitive environment, improper evaluation and selection of the right suppliers can hinder an organizations supply chain performance. The aim of this study is to present a suitable methodology for the evaluation and selection of suppliers in a pharmaceutical manufacturing firm in Ghana. Specifically, the study sought to use the Analytic Hierarchy Process methodology to select the most appropriate raw material suppliers of the artemether-lumefantrine anti-malarial drug for the case study organization. A review of literature identified quality, cost, reliability, regulatory compliance, risk, financial position and supplier profile as the most important criteria for supplier selection. The study however used the three criteria of quality, price and reliability/capacity for selecting the best suppliers. The results suggest that the AHP makes it easier to evaluate, rank and select efficient suppliers for manufacturing firms in a timely and reliable manner. Based on the research findings, the quality selection criterion is most favoured, followed by reliability/capacity, and price. Regarding the selection of the suppliers, the research recommended S & D Chemicals as the best supplier of Active Pharmaceutical Ingredients (APIs) and Hellmuth Carroux as the best supplier of Excipients for the case study firm.

An Integrated DEMATEL and AHP approach Multi Criteria Green Supplier Selection Process for Public Procurement

“…1, starting from formulating Direct Answer Matrix, Original Average Matrix, Normalizing the Direct Influence Matrix, Deriving the Total Relation Matrix and deciding threshold value to get the CER diagram [18]. Step -1 Gather DMs opinion and formulate the Direct Answer Matrix 'A'…”

Pharmaceutical Product Selection: Application of AHP

“…It proposes a fuzzy analytic HierarchyProcess (Fuzzy-AHP) to consider and handle efficiently based on both types of criteria in the selection of global supplier in pharmaceutical industry. Asamoah et al (2012),in a study observed that the AHP makes it easier to evaluate, rank and select efficient supplier for pharmaceutical manufacturing firms in a timely and reliable manner. Mainly three criteria -quality, price, and reliability/capacity were chosen to select most efficient supplier.…”

A hybrid QFD-based approach in addressing supplier selection problem in product improvement process

“…Most researchers are following technical parameters issues in supplier selection process (Tidwell & Sutterfield, 2012;Chandra & Grabis, 2003;Pearson & Ellram, 1995). Researchers have been using different techniques from mixed integer programming and multi-objective programming (Stadtler, 2007;Weber & Ellram, 1993) to application of the AHP/ANP and Fuzzy theory for supplier selection (Kahraman et al, 2003;Asamoah et al, 2012). Accounting for relations and inner relations between the criteria as well as the objectives makes the ANP-QFD more realistic and more reliable for the selecting process (Ordoobadi, 2012).…”