SUPPLIER SELECTION WITH ANALYTIC HIERARCHY PROCESS IN SUPPLYING ORGANIZATIONS OF NAVAL FORCES

Keywords : Analytic Hierarchy Process (AHP), Decision Making, Hierarchy Structuring, Multiple Criteria, Inconsistency Analysis, Supplier Selection.

The Analytic Hierarchy Process (AHP) is a very popular multi criteria decision making approach. Nowadays, AHP becomes one of the essential multi- decision-making methods used by managers and academicians.

The study suggests a decision support model for non-profit organizations to help managers who handle purchasing activity. The structure and objectives of non-profit organizations impose some different criteria in comparison to the for-profit organizations. Appropriate criteria are determined to evaluate the alternatives. The model contains both tangible and intangible criteria to choose the best supplier between the alternative suppliers.

The hierarchy of the model, its solution and sensitivity analysis are reported. This study shows that AHP is a useful tool for the supplier selection process.