Suppose that there are three Suppliers (Supplier A, Supplier B, Supplier C) and we are interested...

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Suppose that there are three Suppliers (Supplier A, Supplier B,Supplier C) and we are interested to evaluate the performance ofthe suppliers by using AHP method. Some of the criteria forsupplier selection process can be defined as follows:
Cost, Quality, and Timeliness.
We would like to add more factors as criteria to the threeabove mentioned criteria. What else factor can be defined ascriteria? Define at least two more criteria.
By considering only the above three criteria (Cost, Quality,and Timeliness), you first introduce three different suppliers thatyou may know and further rank these three alternative suppliers andselect the best one using AHP method. The pairwise comparisonmatrix for each of the three suppliers for each criterion and thecomparison matrix for the three criteria can be given by you basedon your judgment and experiences.

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The first step in any supplier rating procedure is to find the appropriate criteria to be used for assessing the supplier To comply with the criteria for supplier selection and their importance required data were collected based on the consideration of literature Based on considering the studies of Dickson 1966 Weber Current and Benton 1991 Krishnan 2008 and Tahriri Osman Yusuff and Esfandiary 2008 five important criteria were selected The criteria were selected are the most criteria used in many different industries Many studies mentioned in the literature review rate each factor by using the fourcategory scale of Not important 1 to 3 Somewhat important 4 to 5 Important 6 to 7 and Very important 8 to 9 Tam and Tummala 2001 The selected criteria were found cover ABC Companys needs In addition the presence of too many criteria makes the pairwise comparisons in evaluating suppliers a difficult and time consuming process To overcome these problems the cutoff value to reduce the number of criteria to a few is desirable In this step the definition of the subcriteria and sub subcriteria has been done for supplier selection based on the five important criteria selected as the results of the previous step with the consideration of literature Also the sub and subcriteria selected have been done by using the same rule that was used to select the criteria mentioned in the first step After gathering the needed sub and subcriteria they were identified and averaged Fourteen subcriteria and thirtytwo sub subcriteria were selected for levels 3 and 4 in supplier selection model as shown in Figure 1 Step 3 Structure the hierarchical model This phase involves building the AHP hierarchy See Answer

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