Using AHP methodology, the calculate score of each supplier and find out the best supplier . For
Question:
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.
Question 1 (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 |
Business Analytics Data Analysis and Decision Making
ISBN: 978-1305947542
6th edition
Authors: S. Christian Albright, Wayne L. Winston