NEW METHOD OF CRITERIA WEIGHTING FOR SUPPLIER SELECTION

Abstract

In the future, researchers focusing on supplier selection are likely to use a combination of multi-criteria decision-making (MCDM) methods. The analytical hierarchy process (AHP) is often used in such combinations. The function of the AHP method in MCDM is criteria weighting. When there are a relatively large number of participants involved in an evaluation judgment, it is difficult to obtain consistent opinions. In such cases, the AHP is a useful method to obtain consistent opinions over time by repeatedly conducting pairwise comparison matrices. This study proposes a new methodology to resolve such problems. In the proposed method, the decision maker assesses the level of contribution of each criterion to the selection of suppliers. Using the proposed method, comparing the contributions of these criteria to supplier selection will always produce a consistent value. The advantage of the proposed method is that decision makers do not have to assess the degree of importance of each individual criterion. So, if there are n criteria, the decision maker has to access as much as n times. The results of this study indicate that the proposed method consistently produces a solution, without the need for repeated human judgements and without consideration of the number of criteria.

Keywords

• Analytic hierarchy process
• comparison matrix
• criteria
• consistency ratio
• AHP weighting