engleski

Vendor Selection and Supply Quotas Determination by using Analytic Hierarchy Process (AHP) and a new Multi-Objective Programming Method

In this paper a new methodology for vendor selection and supply quotas determination is proposed. The proposed methodology combines Analytic Hierarchy Process for determining the coefficients of the objective functions and a new multiple objective programming method based on cooperative game theory for vendor selection and supply quotas determination. The proposed methodology is tested on the problem of flour purchase by a company that manufactures bakery products. Three criteria are used for vendor selection and quantities supplied determination: (1) purchasing costs, (2) product quality, and (3) vendor reliability.

Analytic Hierarchy Process; multiple objective programming; vendor selection.

This work has been in part supported by Croatian Science Foundation under the project STatistical Modelling for REspoNse to Crisis and Economic GrowTH in WeStern Balkan Countries -STRENGTHS (project no. IP-2013-9402)