Original scientific paper
Supplier Selection Using a Multiple Criteria Decision Making Method
Katica ŠIMUNOVIĆ
; University of Osijek, Mechanical Engineering Faculty in Slavonski Brod, Slavonski Brod, Croatia
Tomislav DRAGANJAC
; Same Deutz Fahr Zetelice d.o.o, Zupanja, Croatia
Roberto Lujić
; University of Osijek, Mechanical Engineering Faculty in Slavonski Brod, Slavonski Brod, Croatia
Abstract
In the present conditions of market globalization and thus increased market competition, the purchasing department and management structure of the company, in addition to answering questions what, how many and when to buy at what price, has also to be answered the question about an appropriate supplier. Supplier selection as well as the efficient inventory control can bring significant savings to a company. For the purpose of systematic evaluation of suppliers, criteria and multiple criteria AHP model (analytic hierarchy process) for selecting the best supplier have been proposed in the paper. The model is illustrated by the example of supplier selection to purchase parts for assembly of the agricultural machine. Multiple criteria and systematic quantitative approach to the supplier selection problem, significantly improve the decision-making process.
Keywords
Analytic hierarchy process; Supplier selection
Hrčak ID:
80442
URI
Publication date:
31.8.2011.
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