Question: There are five candidate suppliers (A, B, C, D and E) to select for a manufacturing company. The evaluation criteria are price, delivery conditions, geographical
There are five candidate suppliers (A, B, C, D and E) to select for a manufacturing company. The evaluation criteria are price, delivery conditions, geographical location and quality.
The following matrix compares the criteria:
| CRITERIA COMPARISON | PRICE | DELIVERY | GEOGRAPHICAL | QUALITY |
| PRICE | 1 | 1/3 | 1/3 | 1/5 |
| DELIVERY | 3 | 1 | 3 | 1/3 |
| GEOGRAPHICAL | 3 | 1/3 | 1 | 1/5 |
| QUALITY | 5 | 3 | 5 | 1 |
The following matrices compares the alternative suppliers for all criteria:
| PRICE | A | B | C | D | E |
| A | 1 | 3 | 5 | 7 | 9 |
| B | 1/3 | 1 | 3 | 5 | 7 |
| C | 1/5 | 1/3 | 1 | 3 | 5 |
| D | 1/7 | 1/5 | 1/3 | 1 | 3 |
| E | 1/9 | 1/7 | 1/5 | 1/3 | 1 |
| DELIVERY CONDITIONS | A | B | C | D | E |
| A | 1 | 1/3 | 5 | 1 | 9 |
| B | 3 | 1 | 5 | 5 | 9 |
| C | 1/5 | 1/5 | 1 | 1/3 | 3 |
| D | 1 | 1/5 | 3 | 1 | 5 |
| E | 1/9 | 1/9 | 1/3 | 1/5 | 1 |
| GEOGRAPHICAL LOCATION | A | B | C | D | E |
| A | 1 | 1/9 | 1/5 | 1/9 | 1/3 |
| B | 9 | 1 | 3 | 1/3 | 9 |
| C | 5 | 1/3 | 1 | 1/3 | 3 |
| D | 9 | 3 | 3 | 1 | 5 |
| E | 3 | 1/9 | 1/3 | 1/5 | 1 |
| QUALITY | A | B | C | D | E |
| A | 1 | 3 | 1/5 | 1/3 | 1/3 |
| B | 1/3 | 1 | 1/3 | 1/3 | 1/5 |
| C | 5 | 3 | 1 | 3 | 1/2 |
| D | 3 | 3 | 1/3 | 1 | 1/5 |
| E | 3 | 5 | 2 | 5 | 1 |
Using AHP methodology, the calculate score of each supplier and find out the best supplier. For each matrix, you must show your calculations. Note that you must also conduct consistency analysis for each matrix.
Please create an Excel file for this problem and use your calculations on that (hint: you can extend the excel template that was posted on Sakai which includes the class example).
Any other submissions other than MS Excel (including handwritten calculations) will receive zero.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts