The Application of Analytic Hierarchy Process in Supplier Selection for Specialty Paper Making Company, A case study in Anhui Welbon Gaosen Paper Co.,Ltd

Abstract

Majority of enterprises choose to implement JIT procurement model to face the marketing fierce competition in recent decades. Single sourcing supplier is the main characteristic in JIT procurement, thence, selecting a suitable supplier become increasingly important. The purpose of the research is to select the most suitable supplier for the case company. More specifical, to identify supplier selection criteria for the case company, then exploiting a flexible analytic model which is AHP to help the case company choose a suitable supplier for implementing JIT Procurement, finally suggestions are given for case company in supplier relationship management, which based on implementing JIT Procurement.

The study begins with literature review of purchasing behavior, supplier related theory and AHP method. Afterwards, qualitative research method of interview and quantitative research method of questionnaires were utilized to identify evaluation criteria and collect pair-wise comparison data for judgment matrixes. Finally, eigenvectors and eigenvalues of judgment matrixes were calculated for ranking priorities and all vectors were passed by consistency verification.

Based on the result from previous research, supplier with the total highest score becomes the most suitable alternative. In addition, suggestions of supplier relationship management are given for the sake of success further implementation of JIT procurement in the case company.