Title: An integrated Delphi-AHP-DEA-LPP multi criteria decision making approach for supplier selection and order quantity allocation system

Authors: Rakesh D. Raut

Addresses: Operations Management Group, Symbiosis Centre for Management and Human Resource Development, Symbiosis Infotech Campus, Plot No. 15, Rajeev Gandhi Infotech Park Hinjewadi, MIDC, Pune – 411057, India

Abstract: This paper, an integrated Delphi-AHP-DEA-LPP (DADLP)-based methodology has been divided into four stages. The first stage is Delphi method, where identification, synthesis and prioritisation of key performance factors and sub-factors are done and a novel consistent measurement scale is developed. Analytic hierarchy process (AHP) and data envelopment analysis (DEA)-linear programming (LP)-based multi-criteria decision-making methodology is then developed to take into account both qualitative and quantitative factors in supplier selection. While the AHP process matches product characteristics with supplier characteristics (using supplier ratings derived from pair wise comparisons) to qualitatively determine supply chain strategy, DEA mathematically determines the efficient supplier from the chosen suppliers. Since DEA and LP uses AHP ratings as input, the variations of pair wise comparisons in AHP will influences the final order quantity. Since DEA and LP use AHP ratings as input, the variations of pair-wise comparisons in AHP will influence the final order quantity.

Keywords: multicriteria decision making; MCDM; analytical hierarchy process; AHP; Delphi method; data envelopment analysis; DEA; pharmaceutical industrry; supplier selection; DADLP; supplier ratings; supply chain strategy; supply chain management; SCM; order quantity allocation.

DOI: 10.1504/IJLSM.2014.062823

International Journal of Logistics Systems and Management, 2014 Vol.18 No.3, pp.366 - 393

Published online: 12 Jul 2014 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article