Article ID: | iaor20021338 |
Country: | United Kingdom |
Volume: | 52 |
Issue: | 5 |
Start Page Number: | 511 |
End Page Number: | 522 |
Publication Date: | May 2001 |
Journal: | Journal of the Operational Research Society |
Authors: | Ravi B., Akarte M.M., Surendra N.V., Rangaraj N. |
Keywords: | supply, analytic hierarchy process |
Manufacturing companies are increasingly dependent on outsourcing to improve their competitive position. At the same time, the approach to supplier selection has dramatically changed from being price-driven to one based on overall capability of the supplier, very much in evidence in the automobile castings sector facing the challenge of mass customization. In this study, 18 criteria have been identified for casting supplier assessment and segregated in four groups – product development capability, manufacturing capability, quality capability, and cost and delivery. A systematic approach to evaluating casting quality suppliers has been developed using the analytical hierarchy process, which enables the combination of tangible and intangible criteria and checking the consistency of decision-making. The approach has been implemented in a prototype web-based system.