Analytic Hierarchy Process (AHP) for a Power Transmission Industry to Vendor Selection Decisions

Abstract

This work attempts to develop a rule based model, to evaluate the performance of vendors, supplying components and raw materials to a multinational organization engaged in designing, manufacturing and delivering a range of products covering various stages of electric power transmission and distribution system. The analytic hierarchy process (AHP) based model, described in this work, is utilized to study the requirements of customers to select suitable vendors validate the model for ordering required components and materials for customers.

Selecting a supplier portfolio with value, development, and risk consideration

“…All methods result in a set of preference, value, efficiency or any other measure to rank suppliers, and aid the decision maker. Analytic hierarchy process (Deng, Hu, Deng, & Mahadevan, 2014;Kumar & Roy, 2011;Mafakheri, Breton, & Ghoniem, 2011), analytic network process (Gencer & Gürpinar, 2007;Vinodh, Anesh Ramiya, & Gautham, 2011), linear programming, multi-objective programming (Jadidi, Zolfaghari, & Cavalieri, 2014), data envelopment analysis (Karsak & Dursun, 2014;Liu, Ding, & Lall, 2000;Wu, 2009), neural networks, case-based reasoning (Faez, Ghodsypour, & O'brien, 2009), fuzzy set theory (Amid, Ghodsypour, & O'brien, 2006;Chen, Lin, & Huang, 2006;Lee, 2009;Senvar, Tuzkaya, & Kahraman, 2014;Wu, Zhang, Wu, & Olson, 2010), or any of their combinations (Amin, Razmi, & Zhang, 2011;Guneri, Yucel, & Ayyildiz, 2009;Kilincci & Onal, 2011;Rezaei & Ortt, 2013;Shaw, Shankar, Yadav, & Thakur, 2012) have been applied in the literature. All models may be classified into the three categories of (i) multi-attribute decision-making, (ii) mathematical programming models and (iii) intelligent approaches (Wang & Yang, 2009).…”

A review of multi-criteria decision making techniques for supplier evaluation and selection

“…A total of twenty nine criteria were identified out of which nineteen belonged to performance group and the rest belonged to company strategy based criteria group, to have a strategic fit with the supplier. Kumar and Roy (2011) proposed a rule based model with the application of AHP to aid the decision makers in vendor evaluation and selection taking the power transmission industry. The article presented a three-step model to calculate the performance scores of various vendors and select the best vendor.…”

The Fundamentals of Global Outsourcing for Manufacturers

“…Chan & Chan (2010) used an AHP-based model to solve the supplier evaluation and selection problem for the fashion industry. Kumar & Roy (2011) proposed the use of a rule-based model with the AHP to aid decision makers in supplier evaluation and selection.…”