A fuzzy-AHP multi-criteria decision-making model for procurement process Online publication date: Mon, 30-Nov-2015
by Sameh M. Saad; Noufal Kunhu; Abdel M. Mohamed
International Journal of Logistics Systems and Management (IJLSM), Vol. 23, No. 1, 2016
Abstract: The purpose of this study is to develop a fuzzy-AHP multi-criteria decision-making model for procurement process. It aims to measure the procurement performance in the automotive industry. As such measurement of procurement will enable competitive advantage and provide a model for continuous improvement. The rapid growth in the market and the level of competition in the global economy transformed procurement as a strategic issue; which is broader in scope and responsibilities as compared to purchasing. This study reviews the existing literature in procurement performance measurement to identify the key areas of measurement and a hierarchical model is developed with a set of generic measures. In addition, a questionnaire is developed for pair-wise comparison and to collect opinion from practitioners, researchers, managers etc. The relative importance of the measurement criteria are assessed using analytical hierarchy process (AHP) and fuzzy-AHP. The validity of the model is confirmed with the results obtained.
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