Application Of Analytic Hierarchy Process (AHP) To A supplier Selection For Totalgaz VietNam Company

Abstract

In today ‗s competitive business environment, selecting right suppliers who are able to provide right products or right services is very important to the success of companies. This thesis examines Totalgaz Vietnam Limited Liability Company, which is currently the second largest LPG (Liquefied Petroleum Gas) company in Vietnam market. Totalgaz Vietnam imports raw materials from the multinational integrated oil and gas company, Total S.A., which is one of the seven ―Supermajor‖ oil organizations in the world. In Vietnam, therefore, suppliers just provide Totalgaz Vietnam with services, not materials. There are also many companies that want to co-operate with Totalgaz Vietnam as service suppliers. The purpose of this thesis is to help Totalgaz Vietnam to choose the most ideal supplier from candidate suppliers. Totalgaz Vietnam desires to go further and become a positive contributor to the development of economy, society and Vietnamese life. The challenges facing Totalgaz Vietnam also increasingly go together with its enlargement. Totalgaz Vietnam is confronted with tight project schedules, higher requirements of regulatory policy, organization, HSES (Health, Safety, Environment, Security), insurance, so on. Therefore, there are plentiful criteria relative to supplier evaluation, including qualitative and quantitative multi-criteria. Also, each criterion includes its own sub-criteria. These criteria and sub-criteria form a very complex set of evaluation factors. What ‗s more, the importance of each criterion as well as each sub-criterion varies based on the valuation of Totalgaz Vietnam ‗s purchasing officers. Thus, selecting the most ideal supplier for Totalgaz Vietnam among various candidate suppliers with their various features is not definitely an easy problem.