MODELLING PROCEDURE FOR THE SELECTION OF STEEL PIPE SUPPLIER BY APPLYING THE FUZZY AHP METHOD
The objective of this study is the supplier evaluation and selection by applying the fuzzy multi-criteria analysis. The study used the fuzzy Analytic Hierarchy Process (FAHP) to choose the most suitable supplier for the purchase of materials necessary for the production of pre-insulated pipes. Decision-makers selected among five suppliers based on nine criteria. Effective execution of procurement, in this case, the procurement of material needed for the production logistics subsystem, influences the overall efficiency of the business. Results show that it is very important to perform the right ranking in the process of supplier selection. Good decisions can ensure lower costs and higher quality of the production and therefore a better position in the market. Also, applied methodology and the rank show that supplier A is the most suitable solution.
fuzzy AHP, optimization, supplier selection