MCDM-AHP and ELECTRE collaboration apps for the best vendor selection technique

Abstract

Vendor selection techniques are very important to maintain supply chain services, optimal service creates strong consistency in maintaining the continuity of supply chain business processes. The aim of this research is to provide an objective and consistent understanding of the best techniques in vendor selection which are implemented openly through the collaboration of multi-criteria decision making-analytic hierarchy process (MCDM-AHP) and ELECTRE. Empirical studies show how this approach is able to provide optimal decision-making support for the vendor selection process. Eight criteria are required which have contradictory meanings in their apps. These criteria include quality of goods (QG), payment methods (PMs), payment terms (PTs), minimum transactions (MTs), discounts (DS), delivery times (DTs), inventory (IN), and service (SV). The comparison importance value of the criteria is used as a measure of weighting the criteria through two testing approaches, namely mathematical algebra matrices and expert choice apps, through accurately assessing the optimal eigenvector from the two test approaches. Decision making support was carried out by comparison using 342 preference matrices which were developed into concordance and discordance matrices, the elimination process with threshold matrices found that the ranking results of four vendors were ranked first as worthy of being a selection priority and fifteen other vendors were ranked below.