Supplier selection approach: integrating analytic hierarchy process and supplier risk analysis
by Maria Do Rosário Cabrita; Rita Frade
International Journal of Business and Systems Research (IJBSR), Vol. 10, No. 2/3/4, 2016

Abstract: Supply chain management (SCM) has taken, over the past few years, a critical function within organisations, involving fundamental activities such as the management of relationships with suppliers, the supplier involvement in the business process and strategic management, while also, focusing on the quality of the best alternative supply. It is known that the process of supplier selection can significantly affect the global performance of the company. Generically, selection of suppliers is the process by which suppliers are analysed, evaluated and chosen to integrate the supply chain organisation. This paper focuses on the selection process of suppliers, conducted by purchase sector of a pharmaceutical company, based on the multi-criteria decision techniques, using for this purpose the method of analytic hierarchy process (AHP). The study purposes a multi-criteria optimisation approach combining AHP with risk sensitivity analysis (RSA) during selecting the suppliers of supply chain network. The novelty of this study lies in the application of a hybrid approach to a real industry case, where supplier risk analysis was used as a complement to the multi-criteria analysis. Drawing on a real case, this study concludes that the AHP-RSA method outperforms the AHP method for supplier selection with respect to restricted supplier selection criteria.

Online publication date: Fri, 01-Apr-2016

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Business and Systems Research (IJBSR):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email