Effective Supplier Selection Using ANP

Abstract

A supplier provides monetary benefts as well as non-monetary benefits for the organization, especially to maintain company reputation and customer satisfaction. Therefore, an effective supplier netiork is an importani key success factor of the organization' There arT{n?ny c_ommon drawbacks in the existing supplier selection processes which hinder the selection ofeffective supplidr/suppliers. Therefore, the objective ofthis research is to develop a model and a mechanism to overcome these common drawbacks while predicting ttre validity of the model across a few industries. With the scope of this paper, supplier selection was considered as a multi-criteria decision making problem 1UCOUI because supplier selection is the evaluation of trade-offs between multiple criteria. Analytic Network process (AI.tp) which is a technique to solve MCDM problems in which the criteria aff:ect each other ani have nonlinear correiatiorl is used here to prioritize criteria and alternatives. Therefore, this model is flexible for selecting suppliers for any product/service across any organization, sector, and industry. The significance of the proposed mo-clel is'its Flexibility across any industry with limitations and supports multiple criteria wlth any number of aliernatives.