Supplier selection using fuzzy AHP: A case study of NIKE

Abstract

Today’s competitive business world, every company or organization expands the size to other countries. While expanding will cost company a lot of investment in infrastructure, so most of the company will choose out sourcing as the expanding strategy. Nike is one of that company, Nike have to choose both supplier for their material the manufacturer to produce their product. . Thus, supplier selection and manufacturer are a multi–criteria decision making process that deals with the optimization of conflicting objectives such as quality, cost, and delivery time, so that, it is extremely important for the decision makers to have a decision support tools in order to make quick, right and accurate decisions. If it is not supported by a system, this would be a complex and time consuming process. In this thesis, a decision support system for supplier selection is developed with friendly GUI to address demand. This system combines fuzzy set theory and the analytic hierarchy process to decrease the influence of decision makers’ subjective preferences during evaluation process. By using both qualitative and quantitative data, in this study, the extent analysis method and integral value calculation is used for computing the priority weights of criteria and alternatives. Finally, a case study of supplier selection and manufacturer is apply for Nike and this system will helps Nike select their preferred partner from candidate partner. Keywords: Fuzzy AHP, GUI, supplier selection, manufacturer selection, partner selection