Supplier selection using combined analytical hierarchy process and grey relational analysis

The purpose of this paper is to develop an evaluation model considering the qualitative and quantitative criteria for supplier selection in an outsourcing manufacturing organization.

In this paper, the authors propose an integrated model by combining the analytical hierarchy process (AHP) and grey relational analysis (GRA) into a single evaluation model. The model is illustrated with a case study of a notebook computer manufacturer to demonstrate the effectiveness of this integrated model.

Through the proposed model, it is possible to effectively integrate the specialized knowledge and experience of each dispersed evaluator, and the quantitative data to select the best suppliers for cooperation.

The decision‐aiding software (AHP‐GRA model) has been implemented in Excel to automate the supplier selection process. This can widely apply the integrated model for the industry.