Supplier selection criteria using analytical hierarchy process (AHP)-based approach: a study in refractory materials manufacturers


Lin, Gu Hong and Chuang, Cheng An and Tan, Cheng Ling and Yeo, Sook Fern and Wu, Fan Yi (2023) Supplier selection criteria using analytical hierarchy process (AHP)-based approach: a study in refractory materials manufacturers. Industrial Management & Data Systems, 123 (6). pp. 1814-1839. ISSN 0263-5577

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Refractory materials are now used in all major industries that demand high-temperature resistance, including petrochemicals, steel, cement and aviation. Businesses must decrease operating costs, enhance product technology, sell well and manage corporate risks in decision-making, notably supplier selection, to be more competitive. The study aims to determine the key criteria and factors of supplier selection and to evaluate the importance of the key factor of the supplier selection criteria for the refractory materials manufacturers in Taiwan. Design/methodology/approach Analytical hierarchy process (AHP) is used to rank these factors for the decision maker. The AHP method is suitable for verifying refractory supplier selection criteria and providing references. The weighted loss scores for each supplier are then determined using the relative importance as the weights. Supplier selection criteria are ranked using their aggregate weighted loss scores. The provider with the lowest loss score should be chosen. Findings Product quality is the most significant of the five criteria: product quality, production technology, logistics capacity, service capability and supplier background. Professionalism is the most significant aspect of product quality, whereas equipment and capacity are vital in manufacturing techniques. The studies also show that the delivery rate is essential for logistics and service capabilities.

Item Type: Article
Uncontrolled Keywords: Refractory, Supplier selection, Analytic hierarchy process, Logistics, Product quality
Subjects: H Social Sciences > HF Commerce > HF5001-6182 Business > HF5410-5417.5 Marketing. Distribution of products
Divisions: Faculty of Business (FOB)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 02 Jun 2023 01:21
Last Modified: 02 Jun 2023 01:21


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