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Article
Publication date: 1 February 2008

Mehmet Sevkli, S.C. Lenny Koh, Selim Zaim, Mehmet Demirbag and Ekrem Tatoglu

This paper aims to propose a new approach called “analytical hierarchy process weighted fuzzy linear programming model (AHP‐FLP)” for supplier selection.

Abstract

Purpose

This paper aims to propose a new approach called “analytical hierarchy process weighted fuzzy linear programming model (AHP‐FLP)” for supplier selection.

Design/methodology/approach

A hybrid method of supplier selection, AHP‐FLP is applied to a real industry case. The weights of the various criteria, taken as local weights from a given judgment matrix, are calculated using analytical hierarchy process (AHP) that are also considered as the weights of the fuzzy linear programming model. This new model is compared with the classical AHP method.

Findings

This study concluded that the AHP‐FLP method outperforms the AHP method for supplier selection with respect to restricted supplier selection criteria. Drawing on a real case, Supplier 1 was identified to be the best supplier through the AHP model under no restrictions, which contradicts the finding that Supplier 2 was selected as the best supplier by the AHP‐FLP model subject to constraints.

Research limitations/implications

More research is definitely called for within the context of studying a more complex supply chain with multiple supply network and nodes. There is also a crucial need for investigating other hybrid methods to find the optimum supplier.

Practical implications

The findings of this study indicate that the weights of supplier selection criteria calculated by the AHP‐FLP model are in line with the actual supplier selection decision of purchasing managers. Since the AHP‐FLP model is relatively more difficult to implement compared with the crisp AHP, its application will be more appropriate for high‐value components where stringent purchasing criteria are required. In contrast, AHP remains an appropriate approach for relatively lower value components (C class).

Originality/value

The novelty of this study lies in the application of a hybrid approach to a real industry case. This study has dealt with one of the most important subjects in supply chain management, providing a better decision for supplier selection using appropriate quantitative techniques.

Details

Industrial Management & Data Systems, vol. 108 no. 1
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 1 March 1990

Fariborz Y. Partovi, Jonathan Burton and Avijit Banerjee

The use of Analytical Hierarchy Process (AHP) is an effective wayto deal with qualitative decision areas of operations management. Fourpublished applications of AHP are…

Abstract

The use of Analytical Hierarchy Process (AHP) is an effective way to deal with qualitative decision areas of operations management. Four published applications of AHP are briefly reviewed in forecasting, supplier selection, facility location, and choice of technology. Furthermore, four more potential applications are suggested in other areas of operations management, including product design, plant layout, maintenance frequency selection, and choice of logistic carrier. In addition, suggestions for other areas of research are discussed.

Details

International Journal of Operations & Production Management, vol. 10 no. 3
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 March 2009

A. Hambali, S.M. Sapuan, N. Ismail and Y. Nukman

Selection of the design concepts is one of the significant activities in product development process. Most of the products are usually failed due to inappropriate decision…

Abstract

Selection of the design concepts is one of the significant activities in product development process. Most of the products are usually failed due to inappropriate decision during the selection of the design concepts at the early stage of product development process. The determination of the greatest selection of design concepts at the conceptual design stage is a crucial decision due to a poor design concept which can never be compensated for by a good detailed design and it will implicate great expense of redesign cost. Analytical Hierarchy Process (AHP) is one available method in forming a systematic approach for a single decision maker or a group decision maker, is employed to solve such problem. In this paper, 7 design concepts of wheelchair designs were considered as a case study. The AHP through utilizing Expert Choice software was implemented to determine the most suitable design concept of wheelchair design at the conceptual design stage. The sensitivity analysis was performed to test the stability of the priority ranking and to increase the confidence in the selection of design concepts.

Details

Multidiscipline Modeling in Materials and Structures, vol. 5 no. 3
Type: Research Article
ISSN: 1573-6105

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Article
Publication date: 1 June 2010

Seyhan Sipahi and Mehpare Timor

The purpose of this paper is to present a detailed literature review of the recent applications of the analytic hierarchy process (AHP) and analytic network process (ANP…

Abstract

Purpose

The purpose of this paper is to present a detailed literature review of the recent applications of the analytic hierarchy process (AHP) and analytic network process (ANP) group decision‐making methodologies.

Design/methodology/approach

Among more than 600 related papers published in the period 2005‐2009, a total of 232 application articles published in highly reputed international academic journals were selected and referenced in this paper. Papers were categorized according to application areas, subject titles, publication date, country of origin, academic journals, and integrated methodologies, and are summarized herein by various tables and charts.

Findings

The findings show that during the years 2005‐2009, use of the AHP technique has continued to increase exponentially. Moreover, it is expected that ANP will gain more popularity in the future, as the benefits of ANP become better understood. Applications of AHP have been dominant in manufacturing, followed by the environmental management and agriculture field, power and energy industry, transportation industry, construction industry, and healthcare. Other remarkable application fields include education, logistics, e‐business, IT, R&D, telecommunication industry, finance and banking, urban management, defense industry and military, government, marketing, tourism and leisure, archaeology, auditing, and the mining industry.

Research limitations/implications

The study does not consider theoretical based AHP or ANP articles. Also the search excluded conference proceedings, masters' theses, and doctoral dissertations.

Practical implications

It is hoped that this study will guide practitioners in future work towards advancement of these techniques and will help the managers to select better decisions by making use of these methodologies.

Originality/value

The paper presents a comprehensive literature review of recent applications of AHP, and also ANP decision tools over the period 2005‐2009. Furthermore, the paper covers fuzzy AHP and fuzzy ANP extensions that are becoming popular methods in some application areas of traditional AHP and ANP.

Details

Management Decision, vol. 48 no. 5
Type: Research Article
ISSN: 0025-1747

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Article
Publication date: 30 September 2014

Kouroush Jenab, Hamid Pourmohammadi and Matin Sarfaraz

The purpose of this paper is to present a new warranty model to improve warranty management. As a case study, the developed model has been applied on an industrial vehicle…

Abstract

Purpose

The purpose of this paper is to present a new warranty model to improve warranty management. As a case study, the developed model has been applied on an industrial vehicle manufacturing company. The model is composed of quality function deployment (QFD) and interval-based analytical hierarchy process (i-AHP). The i-AHP is an extension of the concept of analytical hierarchy process (AHP) that takes the benefits of interval computations in order to mitigate the shortcomings of AHP and fuzzy AHP.

Design/methodology/approach

Using a combination of i-AHP and QFD, the authors analyzed the several options and alternatives available, weighting each one by means of an interval pair-wise comparison. Using collected data, the authors have shown how to map the capability of each option against each alternative and thereby build a relationship matrix under the QFD approach based on interval computations.

Findings

The use of i-AHP&QFD integrated methodology helps to identify the best options to solve several decision problems in diverse fields and could be applied successfully in warranty management. This methodology is especially useful when dealing with several options and equal numbers of alternatives for each warranty option.

Research limitations/implications

The case study includes competitiveness analysis at the first house of quality (HOQ), but not at the subsequent HOQ, due to a lack of information from the relevant competitors. However, the paper demonstrates the kind of competitiveness analysis at the first HOQ which can be extended to all subsequent HOQs.

Practical implications

The research would be useful to academics and practitioners in developing integrated versions of the QFD and i-AHP methodologies to improve warranties.

Originality/value

This study contributes to the diffusion of a new form of integrated warranty model, through the presentation of practical examples of industrial vehicle warranty management. Also, the model presents the i-AHP in order to quantify and compare variables via the use of geometrical averages and to synthesize a subsequent solution.

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Article
Publication date: 20 March 2007

Arash Shahin and M. Ali Mahbod

The purpose of this paper is to provide an integrated approach that prioritizes organizational key performance indicators (KPIs) in terms of the criteria of SMART…

Abstract

Purpose

The purpose of this paper is to provide an integrated approach that prioritizes organizational key performance indicators (KPIs) in terms of the criteria of SMART (Specific, Measurable, Attainable, Realistic, Time‐sensitive) goal setting.

Design/methodology/approach

The research was carried out using the analytical hierarchy process (AHP) technique as the basis for pairwise comparisons of SMART criteria, considering each KPI.

Findings

A new approach is outlined, encompassing step‐by‐step guidelines for decision makers to conduct the prioritization process of SMART KPIs. The results of the case study highlight the applicability of the proposed approach and the calculation process for prioritizing KPIs.

Research limitations/implications

The rating scales used in the AHP analysis are conceptual; although it identifies which dimensions require improvement, the proposed approach does not provide guidance on an appropriate action plan to address deficiencies; another limitation is that the framework adopted only the SERVQUAL service dimensions.

Originality/value

This paper gives a novel approach for prioritization of KPIs. The proposed approach has a holistic mechanism; it could empower decision‐making teams; it is capable of enhancing advanced quality engineering approaches; and provides great opportunities for future research.

Details

International Journal of Productivity and Performance Management, vol. 56 no. 3
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 26 September 2008

Linda Boardman Liu, Paul Berger, Amy Zeng and Arthur Gerstenfeld

The purpose of this paper is to show that there is a wealth of academic literature that qualitatively examines the outsourcing and offshoring from a go/no go perspective…

Abstract

Purpose

The purpose of this paper is to show that there is a wealth of academic literature that qualitatively examines the outsourcing and offshoring from a go/no go perspective. The paper examines the complex “where to outsource” question by applying a quantitative approach called Analytic Hierarchy Process (AHP).

Design/methodology/approach

The authors examine a Fortune 500 company's real‐world decision about where to outsource and summarize the current selection process employed by the company. We then apply our AHP model to the company's decision and compare the results.

Findings

There are four major findings: the location selection decision is a component of the outsource supplier selection decision; the AHP model effectively manages the complexity of the decision making process, incorporating all decision criteria harmoniously; a method such as AHP, which is able to incorporate both qualitative and quantitative criteria into evaluations, would streamline the decision‐making process; and the AHP process allows firms to look at a portfolio of choices and determine which firms are basically equal in qualifications.

Research limitations/implications

The research implies that: (AHP may be more applicable in these areas by providing a rigorous framework for assessment of qualitative and quantitative factors together; and AHP offers substantial flexibility to accommodate the variety and quantity of decision criteria set forth by the firm.

Practical implications

As firms are more active in pursuing opportunities in global markets, identifying the right offshoring location is critical. The selection process is complex, involving a set of qualitative and quantitative factors and requiring rigorous and careful analysis. Therefore, a scientific method that not only offers flexibility and simplicity, but also simultaneously accommodates a wide variety of decision criteria is invaluable. The research demonstrates that AHP provides these benefits and is an effective technique for analyzing the where‐to‐outsource decision.

Originality/value

The extensive literature review suggests that the majority of the existing works focus on analyzing the go/no‐go decision using a qualitative approach. This paper applies the AHP method to the “where to outsource” question to demonstrate one quantitative approach to this complex decision. Additionally, the paper provides a detailed description of how the AHP method is implemented in analyzing the decision by using a Fortune 500 company's data and information as an example.

Details

Supply Chain Management: An International Journal, vol. 13 no. 6
Type: Research Article
ISSN: 1359-8546

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Article
Publication date: 1 March 1996

Seow Eng Ong and Teck Ian Chew

Property investment requires accurate market forecasts. The use of judgemental forecasting to predict property market performance is well established and widely practised…

Abstract

Property investment requires accurate market forecasts. The use of judgemental forecasting to predict property market performance is well established and widely practised. However, the need to deal with a large number of variables and to assess the impact of structural, exogenous and policy changes makes forecasting an inextricably difficult task, given the limitations of holistic forecasting. Proposes the incorporation of the analytical hierarchy process (AHP) to translate expert judgement into accurate and meaningful market forecasts. Such an approach facilitates communication of expert judgement and at the same time provides feedback for the expert. Provides a 12‐month forecast of the Singapore residential property market to illustrate the expert judgemental‐AHP approach.

Details

Journal of Property Valuation and Investment, vol. 14 no. 1
Type: Research Article
ISSN: 0960-2712

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Article
Publication date: 11 April 2016

Amal Al Qubaisi, Masood Badri, Jihad Mohaidat, Hamad Al Dhaheri, Guang Yang, Asma Al Rashedi and Kenneth Greer

The purpose of this paper is to develop an analytic hierarchy planning-based framework to establish criteria weights and to develop a school performance system commonly…

Abstract

Purpose

The purpose of this paper is to develop an analytic hierarchy planning-based framework to establish criteria weights and to develop a school performance system commonly called school inspections.

Design/methodology/approach

The analytic hierarchy process (AHP) model uses pairwise comparisons and a measurement scale to generate the weights for the criteria. The validity of the approach is confirmed by comparing the outputs of school inspection and the outputs of the model in a sample of schools.

Findings

The framework proposed enables school management to address several issues pertaining to its competitive advantage with other schools, the two most important being establishing its performance ranking in the marketplace and identifying the service elements that most require improvement. This study develops a cohesive approach to identify which quality attributes or dimensions require attention.

Research limitations/implications

For school inspections, the data collection and computational problems would increase with the increase in the number of criteria and sub-criteria, as well as the number of schools considered in the selection. Although the range of reported AHP applications is extensive in many disciplines, examples in school quality and inspection remain still rare; as a result, this study could not compare its results with other AHP applications in school inspection or assessment.

Practical implications

The AHP method has the distinct advantage that it decomposes a decision problem into its constituent parts and builds hierarchies of criteria. AHP enables assessors to capture both subjective and objective evaluation measures of school quality. By providing a useful mechanism for assessing the consistency of the evaluation measures and alternatives, the AHP reduces bias in decision making.

Social implications

The AHP model also provides a more systematic evaluation of a given school’s qualitative performance criteria. The proposed AHP model is attractive to assessors and decision makers because its pairwise comparison procedure enables them to offer a relative (rather than absolute) individual criterion assessment on those qualitative factors.

Originality/value

The AHP model could become a sustainable component of overall school system quality improvement by maturing over time. The AHP annual scores could be used as realistic and measureable gauges for measuring school improvement.

Details

International Journal of Educational Management, vol. 30 no. 3
Type: Research Article
ISSN: 0951-354X

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Article
Publication date: 2 March 2015

Vinod Yadav and Milind Kumar Sharma

The problem of supplier selection gets complicated when a company looks for various criteria to evaluate different suppliers. The decision criteria used for supplier…

Abstract

Purpose

The problem of supplier selection gets complicated when a company looks for various criteria to evaluate different suppliers. The decision criteria used for supplier selection process can be different for different organizations due to a large number of factors. Hence, it can be said that supplier selection is basically, a multiple criteria decision-making (MCDM) problem. The purpose of this paper is to propose a hybrid data envelopment analytical hierarchy process (DEAHP) approach to solve the supplier selection problem for an automobile company.

Design/methodology/approach

In this study, the data envelopment analysis (DEA) approach is embedded into analytic hierarchy process (AHP) methodology. Literature review suggested that majority of researches found it appropriate using DEA and AHP methodologies for supplier selection process; hence it is felt that a hybrid DEAHP would be a useful methodology to offer a MCDM model for supplier selection problem.

Findings

First, the key criteria of the supplier selection problem for the company are identified. Then a model is developed and implemented for supplier selection using DEAHP approach. This study concluded that quality, cost and service are the most crucial criteria for an automobile company operational in a developing country like India. Sensitivity analysis further helped to evaluate suppliers based on each criterion.

Research limitations/implications

As this analysis and findings are based on only one case study of an Indian automobile company, and this necessitates caution in interpreting the results. The limited number of interviewed managers in a company restricts the generalizability of the results. Though the company selected for this study is typical of developing country businesses, the findings of the paper may not be readily extensible to other companies. Second, this study used retrospective settings, based on the interviewed feedback after the events had occurred. This method naturally poses limitations due to respondent recall and the accuracy of information provided. Third, the problem chosen for this study is based in a single country context and further additional research will be required to examine if the findings could be extended to other automobile companies in other developing nations. Also in some cases technique used in the study may pose some extra computational efforts.

Practical implications

This study points out the importance of the supplier selection problem. It provides key criteria for supplier selection in Indian context also proposes a framework to deal with multiple criteria. proposed model deals with two crucial criteria long term relationships and flexibility which were relatively less discussed and considered in the literature in past.

Originality/value

The proposed MCDM model can provide the guidelines and directions for the decision makers to effectively choose suppliers in the current competitive environment.

Details

Journal of Enterprise Information Management, vol. 28 no. 2
Type: Research Article
ISSN: 1741-0398

Keywords

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