International Supplier Selection Using AHP Method

Abstract

Businesses focus on five important criteria such as quality, cost, service, supplier’s profile and risk in order to survive and increase their market shares. At this point, supplier selection has to be set and managed effectively. The aim of this study is to develop a new model for international supplier selection by applying the analytical hierarchy process (AHP) method, one of the multi-criteria decision making (MCDV) techniques. In addition, it is aimed to draw attention to the most important criteria in the specified sector and to contribute to the literature with the application. The paper concentrates on five main factors; cost, quality, service, supplier profile and risk, twenty sub-criteria, and three alternatives. According to the results, it was concluded that the most important criterion in the selection of international suppliers is 'risk', and sub-criteria are \"product price\", \"delivery time\", \"flexibility\", \"financial condition\", \"foreign currency and economic status\". In addition, it has been deduced that supplier-B is the most important supplier among the existing suppliers of the enterprise.