Sustainable Supplier Selection in the Manufacturing Sector Using Integrated MCDM Techniques

Abstract

Selecting a supplier is a crucial task for any manufacturing company aiming to optimize its supply chain operations and gain a competitive advantage. The complexities of this decision-making process, influenced by various criteria and uncertainties, underscore the need for advanced methodologies such as Multi-Criteria Decision-Making (MCDM) techniques. These methodologies provide a structured framework for evaluating and prioritizing potential suppliers based on numerous criteria, often with conflicting considerations. This paper demonstrates the integration of the Analytical Hierarchy Process (AHP) and Simple Additive Weighting (SAW) through a practical example involving ten different alternatives and four distinct criteria. The alternatives are assessed and ranked for performance, utilizing systematic and objective approaches to address the inherent multi-criteria complexity of supplier selection. The strength of MCDM lies in its capability to handle both quantitative and qualitative factors, supported by decision support tools, making it a valuable asset for improving the supplier selection process.

Keywords

• analytical hierarchy process (ahp)
• simple additive weighting (saw)
• multi-criteria decision-making (mcdm) techniques
• supplier selection