Development of an AHP based supplier evaluation system: a case study in a Turkish defense firm

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2019
Kartal, Burak.
Supply chain process is one of the key processes in manufacturing firms which consists of various business entities such as suppliers, manufacturers, distributors, retailers and consumers. In order to establish a sustainable supply chain system, suppliers should be monitored and controlled on a regular basis. Supplier evaluation plays a crucial role to sustain a well-performing supplier pool for large manufacturing firms. To build an effective supplier evaluation system, the set of criteria covering the whole supplier evaluation process should be considered. This study focuses on establishment of an effective supplier evaluation system for a Turkish defense firm. Analytic Hierarchy Process (AHP) is applied to structure the problem through six main criteria which are ramified in 19 sub-criteria. This study provides a numerical case which focuses on suppliers in the machining field of the chosen Turkish defense firm to evaluate their performances. In criteria weight determination, the decision maker and different experts based on their expertise are selected and their opinions are used. Suppliers are classified into three tiers regarding their performance and recommendations are provided to the firm in order to improve supplier evaluation process. Sensitivity analysis is conducted and it is observed that results of proposed AHP method is not prone to changes. The benefits of the proposed method for supplier evaluation problem are presented.