Expert Systems With Applications 62 (2016) 273–283
Contents lists available at ScienceDirect
Expert Systems With Applications
journal homepage: www.elsevier.com/locate/eswa
Designing an integrated AHP based decision support system for
supplier selection in automotive industry
Fikri Dweiri
a,1
, Sameer Kumar
b,∗
, Sharfuddin Ahmed Khan
a,2
, Vipul Jain
c,3
a
Industrial Engineering and Engineering Management Department, College of Engineering, University of Sharjah, P. O. Box 27272, Sharjah, UAE
b
Operations and Supply Chain Management Department, Opus College of Business, University of St. Thomas, 1000 LaSalle Avenue, Minneapolis, MN 55403,
USA
c
Victoria Business School, Victoria University of Wellington, 23, Lambton Quay, Pipitea Campus, Wellington 6140, New Zealand
a r t i c l e i n f o
Article history:
Received 13 November 2015
Revised 17 May 2016
Accepted 14 June 2016
Available online 16 June 2016
Keywords:
Supplier selection
Analytic hierarchy process (AHP)
Supply chain management
Multi-criteria decision making (MCDM)
Sensitivity analysis
Decision support system
a b s t r a c t
Purpose: The purpose of this paper is to propose a decision support model for supplier selection based on
analytic hierarchy process (AHP) using a case of automotive industry in a developing country of Pakistan
and further performs sensitivity analysis to check the robustness of the supplier selection decision.
Methodology: The model starts by identifying the main criteria (price, quality, delivery and service) using
literature review and ranking the main criteria based on experts’ opinions using AHP. The second stage
in the adopted methodology is the identification of sub criteria and ranking them on the basis of main
criteria. Lastly perform sensitivity analysis to check the robustness of the decision using Expert Choice
ۛ
software.
Findings: The suppliers are selected and ranked based on sub criteria. Sensitivity analysis suggests the
effects of changes in the main criteria on the suppliers ranking. The use of AHP in the supplier selection
gives the decision maker the confidence of the consistency and the robustness throughout the process.
Practical implications: The AHP methodology adopted in this study provides managers in automotive in-
dustry in Pakistan with the insights of the various factors that need to be considered while selecting
suppliers for their organizations. The selected approach also aids them in prioritizing the criterion. Man-
agers can utilize the hierarchical structure of adopted supplier selection methodology suggested in this
study to rank the suppliers on the basis of various factors/criteria.
Originality/value: This study makes three novel contributions in supplier selection area. First, AHP is ap-
plied to automotive industry and use of AHP in the supplier selection gives decision maker the confi-
dence of the consistency. Second, sensitivity analysis enables in understanding the effects of changes in
the main criteria on the suppliers ranking and help decision maker to check the robustness throughout
the process. Last, we find it important to come with a simple methodology for managers of automotive
industry so that they can select the best suppliers. Moreover, this approach will also help managers in
dividing the complex decision making problem into simpler hierarchy.
© 2016 Elsevier Ltd. All rights reserved.
1. Introduction
Supplier selection is one of the strategic decision that compa-
nies have to take and are vital as they play significant role in
overall supply chain management. It is a multi-criteria decision
making (MCDM) problem. In addition, supplier selection in today’s
competitive market is the most critical function for the success of
overall performance of supply chain cycle and organization. The
∗
Corresponding author. Fax: +651 962 4710.
E-mail addresses: fdweiri@sharjah.ac.ae (F. Dweiri), skumar@stthomas.edu (S.
Kumar), skhan@sharjah.ac.ae (S.A. Khan), vipul.jain@vuw.ac.nz (V. Jain).
1
Fax: +971 65053963.
2
Fax :+971 6 5053963.
3
Fax :+971 6 5053963.
present study focuses on building a decision support system for
supplier selection strategy using Analytic hierarchy process (AHP)
based on a case study of automotive sector in Pakistan.
1.1. Automobile industry in Pakistan
According to Be ¸ skese and ¸ Sakra (2010), the automotive industry
is the principle customer for many industrial branches such as iron
and steel, light metals, petro-chemicals, glass, tires, etc. Moreover,
it creates vast business volume and employment together with its
suppliers as well as the auxiliary sectors of marketing, distribu-
tion, services, fuel, finance and insurance which supply automotive
products/services to customers. That’s why automotive industry is
considered as a backbone of any industrialized nation and devel-
oping country like Pakistan.
http://dx.doi.org/10.1016/j.eswa.2016.06.030
0957-4174/© 2016 Elsevier Ltd. All rights reserved.