Vendor Selection by Analytic Hierarchy Process (AHP) in Livestock Trading Ecosystem

Abstract

As livestock plays a very crucial role in Indian economy. Livestock trading in India is very unstructured. The Buyer can be farmer or Diary farm owner who wants to procure a livestock. In this research the Livestock which is considered is the Murrah buffalo belong to water buffalo (Bubalus bubalis) breed which are mainly kept for milk production. The buyer is available with 8 suppliers which are fulfilling the same criteria of the breed. The Suppliers are divided into two segments, large scale supplier and small scale supplier. The supplier having more than 10 livestock of same breed has been considered large scale supplier, and the supplier having less than or equal to 10 has been considered small scale supplier. As competition is increasing every day the procurement activities are highly important. So, Multi criteria decision making approach has been used. Specifically, Analytic Hierarchy Process has been used for the selection of vendor among the alternatives available. In this research three criteria, seven sub criteria and eight alternatives has been evaluated. All vendors are ranked according to the result obtained from the AHP to aid the decision making. By implementation of AHP we were able to obtain the best fit vendor. AHP is a practical tool used for aiding the decision making when there are too many parameters. In Livestock trading ecosystem this tool will help in decision making