International Journal of Academic Research in Business and Social Sciences

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Using Analytical Hierarchy Process (AHP) to Build Suppliers' Selection Model

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The analytical Hierarchy process (AHP) is a multi- criteria decision making approach (MCDMA) can be used to solve complex decision problems. This study aimed to use this objective tool to build suppliers' selection model, utilizing competitive priorities "quality, cost, delivery and flexibility" as an evaluation and selection criteria. The researcher has developed an evaluation questionnaire distributed to a simple random sample of functional managers in the chemical industries sector companies enlisted in Amman Stock Exchange, the relative importance degrees were measured for main criteria "competitive priorities" from the perspective of those managers to identify their attitudes when selecting suppliers, the study concluded that the quality is the most important criterion among competitive priorities criteria for selecting and evaluating suppliers as it got a percentage of 0.53 of the general sum, followed by cost criterion that got a percentage of 0.22 so the two criteria have got 0.75 percentage. In the light of what the study has concluded, the researcher recommended the necessity of using Analytical Hierarchy Process in making decisions of selecting suppliers especially in chemical industries sector, and other industrial sectors as well, due to what this approach has of advantages and features for making complex decisions.
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