Improving supplier selection and evaluation process in processed chicken food factory

Abstract

Supplier selection is a complex problem and a strategic activity of a purchasing department in a supply chain. Suppliers are not selected based only on price but also selected based on multi-criteria both qualitative and quantitative criterions. A trade-off between these tangible and intangible factors finally provides the best supplier who offers the best deal among others. The study incorporates AHP in selecting the best supplier. This approach provides an explicit way of criteria evaluation to select the right supplier, depending on its importance. For this study, an AHP supplier selection model is formulated and applied to the real case study for frozen chicken-food manufacturing company in Thailand. Using the AHP-based multi-criteria decision model via scoring suppliers performance reduces time and effort in supplier selection as well as improves decision making process of solving the supplier selection problem.