Use of analytic network process in vendor selection decisions

TLDR: In this article, an analytic network process (ANP) model is proposed in evaluating supplier selection process as a framework to help managers, it is shown that ANP can be used as a decision analysis tool to solve multi-criteria supplier selection problems that contain interdependencies.

Abstract: Purpose – To provide a good insight into the use of analytic network process (ANP) that is a multiple criteria decision‐making methodology in evaluating supplier selection problems.Design/methodology/approach – Supplier selection problems are multi‐objective problems which have many qualitative and quantitative concerns. In this study, an ANP model is proposed in evaluating supplier selection process as a framework to help managers.Findings – It is shown that ANP can be used as a decision analysis tool to solve multi‐criteria supplier selection problems that contain interdependencies.Research limitations/implications – ANP is a complex methodology and requires more comparisons than the traditional AHP and it increases the effort.Originality/value – Provides an effective framework to guide managers for evaluating suppliers.