A supplier selection decision model using multi-criteria decision analysis in a small manufacturing company
Peer reviewed, Journal article
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Original versionIFAC-PapersOnLine. 2022, 55 (10), 2773-2778. 10.1016/j.ifacol.2022.10.149
Industry 4.0 and digitalization increasingly requires managers to make decisions in shorter time frames and at a higher level of accuracy. Among the many decision-making tools to help managers are multi-criteria decision-making methodologies (MCDM) such as Analytic Hierarchy Process (AHP) and Analytic Network Process (ANP). The aim of this paper is to develop a MCDM hierarchical model with specific attributes of AHP/ANP to aid the decision-making process of buying capital spare parts from different suppliers. The paper is based on a case study of the comparative application of AHP and ANP approaches in a manufacturing company that develops and produces parts. We consider the decision involving 3 suppliers of a capital spare part (SP) with 3 decision makers inherent in the process. For this model, 6 attributes were grouped into 2 hybrid criteria. The results obtained through the decision process using the AHP and ANP are then compared and discussed.