Theory and Applications of AHP/ANP in Supply Chain Management session at INFORMS 2021

Theory and Applications of AHP/ANP in Supply Chain Management session at INFORMS 202

A MULTIPLE CRITERIA APPROACH FOR THE EVALUATION OF THE RAIL TRANSIT NETWORKS IN ISTANBUL

This paper evaluates three alternative rail transit network proposals for Istanbul using a multiple criteria decision support system called Analytic Hierarchy Process (AHP). AHP facilitates decision making by organizing perceptions, experiences, knowledge and judgments into a hierarchical framework with a goal, scenarios, criteria and alternatives of choice. Based on this analysis, the decision makers have developed a new alternative as a combination of the most closely competing two alternative rail transit networks. The AHP was found to contribute effectively to solving complex problems. The sensitivity analysis method of the AHP, by displaying different outcomes depending on the priority given to high-level criteria, was found to be particularly important in the decision process

A purchasing decision: Selecting a supplier for a construction company

Supplier selection is one of the most crucial activities performed by organizations because of its strategic importance. Supplier selection is a multi-objective problem involving both quantitative and qualitative criteria. Over the years a number of quantitative approaches have been tried. Although the Analytic Hierarchy Process (AHP) has previously been used in supplier selection problems, one major weakness of the application-oriented AHP literature is that it tends to focus on the mechanics of AHP instead of on the theoretical and practical implications associated with finding a solution. Though it is one of the most extensively used Multiple Criteria Decision Analysis methodologies, our literature search indicated that most studies found the best solution and stopped there, ignoring sensitivity analysis. Performing sensitivity analysis is very important for practical decision making, sometimes even as important as finding the best solution. In this paper for the first time a comprehensive application of AHP for a real-world case is presented along with sensitivity analysis in choosing the best suppliers for a Turkish construction company. As a result of this study the company decided to allocate the order quantities between the two top suppliers