DETERMINING THE BEST SUPPLIER BY USING ANALYTICAL HIERARCHY PROCESS (AHP) METHOD AND ORDINAL PRIORITY APPROACH (OPA) METHOD

Abstract

In daily practice, normally purchasing department deal with so many suppliers. These suppliers have so many variations in performance and specification profiles. This fact leads Purchasing Department to complex situations since it involves multi- criteria decision-making in selecting the best suppliers. This issue is critical to Supply Chain Management. To help the purchasing department in selecting the best supplier, this research applies two methods i.e. Analytical Hierarchical Process (AHP) and Ordinal Priority Approach (OPA). Executing these complete processes steps can clarify the issues on how to develop the criteria based on the perceptions of the decision makers for the supplier selection, on how to select the supplier based on Multi-Criteria Decision-Making (MCDM) using AHP and OPA methods. Two projects were evaluated on the process selection of the best supplier, each project has 3 candidates. The results show that both AHP and OPA methods provide the same rank of suppliers, even though it has different values.