FDP

on
AHP Model: Application on Vendor
Evaluation
(step by step algorithm using MNV
technique)
Presented
by
Amit Kapoor
Assistant Professor
 Vendor evaluation
Process of evaluating and ranking vendors based on some
predefined criteria
A Multi Criteria Decision Making (MCDM) process
 Traditional Methods of Vendor
Evaluation
Categorical Plan
Weighted point method
Cost ratio plan
 AHP Model
Developed by Prof Thomas L. Saaty in early 1970s
MCDM model
Suitable for group decision making
Method to derive ratio scale from paired comparison
Doesnt provide correct decision rather provides decision
suitable to goal
Problems are decomposed into a hierarchy of criteria, and
alternatives
 Advantages and Disadvantages
Advantages
Reduces complex decision
to pairwise comparison
Disadvantages
Rank criteria according to Complexity

need of buyer
Differences in opinion
Inconsistency may exist

Helpful in group decision

Converts pairwise
comparison into ratio scale