Fuzzy AHP based supplier selection in e-procurement

Abstract

Organisations need information technology to help them make quick, right and accurate purchasing decisions and better manage their relationships with their suppliers. This help comes in the form of electronic procurement (e-procurement) technology augmented with supplier selection systems. Supplier selection is a multi-criteria decision-making process that deals with the optimisation of conflicting objectives such as quality, cost and delivery time. If performed manually, this process is complex and time-consuming. Although supplier selection is heavily discussed in the literature and models have been designed for it, few efforts have been dedicated to developing a system based on these models. We propose a supplier selection system based on the Analytic Hierarchy Process (AHP), a commonly used model for multi-criteria decision-making problems. The system integrates fuzzy concepts and empirical data. We report on a study conducted in a hospital to validate the design of the supplier selection system and its underlying fuzzy AHP model.

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