MULTICRITERIA DECISION MAKING - PRACTICAL EXAMPLE OF AHP BASED APPROACH FOR SUPPLIER SELECTION

Abstract

Paper presents multi-criteria decision making problem of supplier selection. When evaluating and choosing the best supplier, decision maker faces complex task that usually consists of analyzing many qualitative and quantitative conflicting performance measures. On practical example applied in one company from Belgrade, this paper describes how decision maker can chose the best supplier by using Analytical Hierarchical Process and software Expert Choice. This study identifies criteria used for decision making, alternatives, and presents Expert Choice calculation and sensitivity analysis of solution.