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A vendor’s evaluation–using AHP for an Indian steel pipe manufacturing company

Author

Listed:
  • Kamath, Giridhar
  • Naik, Rakesh
  • Prasad, H C Shiva
Abstract
To improve a firm’s supply chain performance, it is essential to have a vendor evaluation process to be able to showcase an organization’s success in the present aggressive market. Hence, the process of evaluating the vendor is a crucial task of the purchasing executives in supply chain management. The objective of this research is to propose a methodology to evaluate the vendors for a steel pipe manufacturing firm in Gujarat, India. For the purpose of the study, the Analytical Hierarchy Process was used to evaluate the best raw material vendor for this company. Multiple qualitative and quantitative criteria are involved in the vendor evaluation process. To solve the complex problem of vendor evaluation, a trade-off between these multi-criteria is important. The outcomes indicated that the AHP technique makes it simpler to assign weights for the different criteria for evaluating the vendor. Research findings showed that quality is the most important criterion followed by delivery, cost and vendor relationship management.

Suggested Citation

  • Kamath, Giridhar & Naik, Rakesh & Prasad, H C Shiva, 2016. "A vendor’s evaluation–using AHP for an Indian steel pipe manufacturing company," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(3), pages 442-461.
    • Handle: RePEc:zbw:espost:182470
    DOI: 10.13033/ijahp.v8i3.460
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    References listed on IDEAS

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    1. Weber, Charles A. & Current, John R. & Benton, W. C., 1991. "Vendor selection criteria and methods," European Journal of Operational Research, Elsevier, vol. 50(1), pages 2-18, January.
    2. Tam, Maggie C. Y. & Tummala, V. M. Rao, 2001. "An application of the AHP in vendor selection of a telecommunications system," Omega, Elsevier, vol. 29(2), pages 171-182, April.
    3. Shpend IMERI, 2013. "Key Performance Criteria For Vendor Selection €“ A Literature Review," Management Research and Practice, Research Centre in Public Administration and Public Services, Bucharest, Romania, vol. 5(2), pages 63-75, June.
    4. S Yahya & B Kingsman, 1999. "Vendor rating for an entrepreneur development programme: a case study using the analytic hierarchy process method," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(9), pages 916-930, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Cost; Delivery; Quality; Vendor evaluation; Vendor relationship management;
    All these keywords.

    JEL classification:

    • C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
    • M11 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Production Management

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