Proposed Method for Supplier Selection

Agus Ristono (), Tri Wahyuningsih () and Eko Junianto ()
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Agus Ristono: Industrial Engineering Department, UPN "Veteran" Yogyakarta, Indonesia
Tri Wahyuningsih: Management Department, UPN "Veteran" Yogyakarta, Indonesia
Eko Junianto: Post Graduate Student, Industrial Engineering Department, UPN "Veteran" Yogyakarta, Indonesia

Technium Social Sciences Journal, 2020, vol. 13, issue 1, 376-394

Abstract: The use of the Analytical Hierarchy Process (AHP) is frequent in supplier selection. First, AHP is a pairwise comparison between criteria. If the pairwise comparisons are inconsistent, the result is invalid. Thus, the process of comparing criteria must be repeated continuously until valid results are obtained. This process takes time and costs so it is considered inefficient. This research proposes the application of the Hamilton chain process into the pairwise comparison matrix. One criterion is symbolized as a knot, while the arc is symbolized as the pairwise comparison value between the two nodes or the connected criterion. In the network model of the AHP method, each node is connected to all other nodes without exception. Whereas in the proposed method, each criterion or node is compared only once. That said, avoiding inconsistencies can be made. The consistency ratio result of the proposed method is found to be consistent.

Keywords: Analytical Hierarchy Process (AHP); supplier selection; Hamilton chain; criteria (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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