An integrated Delphi-AHP-DEA-LPP multi criteria decision making approach for supplier selection and order quantity allocation system

This paper, an integrated Delphi‐AHP‐DEA‐LPP (DADLP)‐based methodology has been divided into four stages. The first stage is Delphi method, where identification, synthesis and prioritisation of key performance factors and sub‐factors are done and a novel consistent measurement scale is developed. Analytic hierarchy process (AHP) and data envelopment analysis (DEA)‐linear programming (LP)‐based multi‐criteria decision‐making methodology is then developed to take into account both qualitative and quantitative factors in supplier selection. While the AHP process matches product characteristics with supplier characteristics (using supplier ratings derived from pair wise comparisons) to qualitatively determine supply chain strategy, DEA mathematically determines the efficient supplier from the chosen suppliers. Since DEA and LP uses AHP ratings as input, the variations of pair wise comparisons in AHP will influences the final order quantity. Since DEA and LP use AHP ratings as input, the variations of pair‐wise comparisons in AHP will influence the final order quantity.