Supplier Selection Process Model

Chapter SEVEN

Conclusion and Recommendations

7.1 Introduction

7.2 Major Findings

7.3 Conclusions

7.4 Recommendations

7.5 Future Researches 7.1 Introduction

When an organization is dealing with selecting the best supplier to deliver a good or service, the decision can often be very complex. Supplier selection problems are multi-criteria problems which have many qualitative and quantitative concerns. This research has presented the AHP as a decision analysis tool in supplier selection problems. An AHP model was proposed to select the supplier for the small and medium enterprise. This chapter summarized the major findings, conclusion and recommendations that were derived from combined results of literature review, methodology and the case study.

These criteria are developed and ranked by purchasing managers and suppliers in order to understand their view with the help of questionnaire survey. The main supplier selection criteria were identified and ranked by the public sector as follows:

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First of all, this is the primary model for supplier selection problem; further research is required to review the suitability of the hierarchy structure, the validity and significance of the selection criteria and sub-criteria, and their weights. Secondly, rather than material testing machine there are a lots of machines and equipments which are being purchase , it is suggested that research on the application of the AHP and ISM model in other kinds of supplies is conducted in the future. This will help in further verification and fine tuning of the model. Thirdly, there are some limitations of the approach. AHP and assumes linear independence of criteria and alternatives. A comparative study between AHP and other MCDM is recommended in the supplier selection field. If there is dependence among the criteria, Analytic Network Process (ANP) (Saaty, 2001) is more appropriate yet, ANP requires far more comparisons which may be formidable in practical decision environment. This is a new area of research to explore. Finally, criteria included in the supplier selection process may frequently contradict each other (lowest price against poor quality). Therefore, it requires substantial judgment to assess the wide range of trade-offs present, to recognize all the alternatives available and to make a decision, which balances both the short- and long-term needs of an organization. It is importance to analyze the