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AHP Example: Comparison Matrices Are Given. Using AHP, How Will You Select The Vendor?

ABC Company wants to select a supplier based on cost, quality, and reputation. There are three vendors to choose from. Comparison matrices are provided to compare the vendors based on each criterion. Using the Analytic Hierarchy Process (AHP), the vendor's scores on each criterion will be calculated and weighted based on the criterion's importance to determine the best overall vendor.

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DHARMAARJUN K 1828010
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39 views

AHP Example: Comparison Matrices Are Given. Using AHP, How Will You Select The Vendor?

ABC Company wants to select a supplier based on cost, quality, and reputation. There are three vendors to choose from. Comparison matrices are provided to compare the vendors based on each criterion. Using the Analytic Hierarchy Process (AHP), the vendor's scores on each criterion will be calculated and weighted based on the criterion's importance to determine the best overall vendor.

Uploaded by

DHARMAARJUN K 1828010
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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AHP Example

ABC Company wants to select their suppliers based on three criterion, Cost, Quality and Reputation.
There are three Vendors to choose from: Vendor 1, Vendor 2, and Vendor 3.

Comparison matrices are given. Using AHP, how will you select the vendor?

Cost
Vendor Vendor 1 Vendor 2 Vendor 3
Vendor 1 1 4 3
Vendor 2 1/4 1 1/2
Vendor 3 1/3 2 1

Quality
Vendor Vendor 1 Vendor 2 Vendor 3
Vendor 1 1 1/4 1/6
Vendor 2 4 1 2
Vendor 3 6 1/2 1

Reputation
Vendor Vendor 1 Vendor 2 Vendor 3
Vendor 1 1 4 3
Vendor 2 1/4 1 1/2
Vendor 3 1/3 2 1

Criterion Cost Quality Reputation


Cost 1 2 4
Quality 1/2 1 3
Reputation 1/4 1/3 1

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