An Application of Analytic Hierarchy Process and Fuzzy Analytic Hierarchy Process to The Case Type Selection Problem

Abstract

Business enterprises need to show high performance in their industries in order to achieve a sustainable competition. This is not related only to individual performances, and each link on supply chain may have a considerable effect on business performance. Therefore, supply chain management is quite essential to the enterprises that supplier selection is one of its key elements to be run, and another is establishing the form of packaging before the supplier delivers the ordered raw materials. Raw material costs are influenced by the ability to determine such issues as packaging way, type of case, etc., and these factors are also important to maintain the quality of material. The aim of this study is to select the type of the case for raw materials to be placed in by the supplier, in the automobile industry with very intense competition. In order to solve this multi-criteria decision making problem, the Analytic Hierarchy Process (AHP), one of the multi-criteria decision making techniques, was used. Due to the ambiguity in several paired comparisons, the problem was also resolved using the Fuzzy Analytic Hierarchy Process (Fuzzy AHP).