AHP

APPLICATION OF THE ANALYTIC HIERARCHY PROCESS IN SUPPLIER

EVALUATION AND SELECTION

A project report submitted in partial fulfilment of the

Requirements for the award of the degree of

Bachelor of Information Technology

By:

Mohammed Khalid Alharthi

Salman Awed Alatwi Sultan EtanAlbalawi

Yasser Mohammed Alabalawi

Supervised By:

Dr. Osman Ahmed Abdalla

Department of Information Technology

Faculty of Computers and Information Technology

University of Tabuk

December 2014

ii

DECLARATION

I hereby declare that this project report is based on my original work except for citations

and quotations which have been duly acknowledged. I also declare that it has not been

previously and concurrently submitted for any other degree or award at University of Tabuk or

other institutions.

Name ID No. Signature

MOHSMMED KHALID ALHARTHI 321000020

SALMAN AWED ALATWI 321001865

SULTAN ETANALBALAWI 321002504

YASSER MOHAMMEDALBALAWI 321001533

Date : _________________________

APPROVAL FOR SUBMISSION

I certify that this project report entitled "SUPPLIER SELECTION" was prepared by

Mohammed Khalid Alharthi , Salman Awed Alatwi, Sultan EtanAlbalabwi, Yasser

Mohammed Albalawihas met the required standard for submission in partial fulfilment of the

requirements for the award of Bachelor of information technology at University of Tabuk.

iii

Approved by,

Signature : _________________________

Supervisor : Dr. Osman Ahmed Abdalla

Date : _________________________

The copyright of this report belongs to the author and is protected under the intellectual

property right laws and conventions. It can only be considered/used for purposes like extension for

further enhancement, product development, adoption for commercial/organizational usage, etc.,

with the permission of the University of Tabuk.

2014, University of Tabuk. All right reserved

iv

ACKNOWLEDGEMENTS

We would like to thank everyone who had contributed to the successful completion of this

project. We would like to express my gratitude to my research supervisor, Dr. Osman Ahmed for

his invaluable advice, guidance and his enormous patience throughout the development of the

research.

In addition, we would also like to express our gratitude to my loving parent and friends

who had helped and given our encouragement......

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APPLICATION OF THE ANALYTIC HIERARCHY PROCESS IN

SUPPLIER EVALUATION AND SELECTION

ABSTRACT

The aim of this project is to employ the Analytic Hierarchy Process (AHP) method in

order to select the best supplier of personal computers PC purchasing in university of

Tabuk. AHP is powerful and most popular mathematical technique for multi-criteria

decision making. One of the major problems and challenges that facing the modern

organization and companies is the process of selecting the best supplier of products, raw

materials, materials, machines, equipment, and services selection . This process may take

long time and select the wrong supplier.

The propose methodology are:

Determine the data of suppliers with adequate criteria, sub-criteria and alternatives

structure of the hierarchical model , prioritize the order of criteria or sub-criteria , measure

the suppliers performance and Identify supplier's priority and selection.

Propose AHP method contributes in helping decision maker to select the best supplier with

high level of confidence, less time and effort consuming.

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TABLE OF CONTENTS

CONTENTS Page No.

DECLARATION II

ACKNOWLEDGEMENTS IV

ABSTRACT V

TABLE OF CONTENTS VII

LIST OF TABLES VIII

LIST OF FIGURES IX

LIST OF ABBREVIATIONS X

Chapter 1 1

1.1 Background : 1

1.2 Statement of the problem: 2

1.3 Objectives: 2

1.4 The AHP method : 2

1.5 Layout : 3

Chapter 2 4

Background and literature review 4

2.1 decision making 4

2.2 supplier selection 4

2.3 supplier selection process : 5

2.4 supplier selection methods : 5

2.5 the analytic hierarchy process : 7

2.6 how AHP works 8

2.7 AHP details 9

Chapter 3 10

Methodology 10

3.1 Planning 11

3.2 Analysis 12

3.3 Design 13

3.3.1 Model formulation 13

3.4 Implementation 18

3..5 Requirements analysis 20

3.5.1 Use case 20

4.Use case specifications 21

5. Database table 25

Chapter 4 26

Design 26

4.1. User log in 26

4.2. Compared to criteria 27

4.3. compared to a price of preference screen 27

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4.4. Compared to a memory of preference screen 28

4.5. Compared to storage of preference screen 28

4.6.Compared to delivery of preference screen 29

4.7.Result of selection screen 29

REFERENCES 30-31

LIST OF TABLES

TABLE Page No

Table of Contents VII

List of Tables VIII

List of Figures IX

LIST OF ABBREVIATIONS X

Table3. 1 project phases 11

Table: 3. 2 The test data 11

Table: 3.3 measurement scale3 AHP measurement scale 13

Table:3. 4 AHP example: original matrix 14

Table3. 5 AHP example: normalized matrix 14

Table:3. 6 AHP example: processer matrix 15

Table :3.7 AHP example: normalized processer matrix 15

Table:3. 8 AHP example: memory matrix 15

Table:3. 9 AHP example: normalized memory matrix 16

Table:3. 10 AHP example: int-storage matrix 16

Table :3.11 AHP example: normalized int-storage matrix 16

Table :3.12 AHP example: price matrix 17

Table:3. 13 AHP example: normalized price matrix 17

Table :3.14 AHP example: delivery matrix 17

Table:3. 15 AHP example: normalized delivery matrix 18

Table:3. 16 AHP example: summary of results 18

Table: 4.1 Log in 21

Table: 4.2 Compared to criteria 22

Table: 4.3 Compared every criteria of preference 23

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Table: 4.4 View result 24

table:5.1 User table 25

Table:5.2 User table 25

LIST OF FIGURES

Figure Page No.

Figure 2.1 The general AHP hierarchy 7

Figure 3.1 SDLC waterfall methodology 10

Figure 3.2 Hierarchy of the AHP example 12

Figure 3.3 login use case Main Interface 20

Figure 4.1 main interface 26

Figure 4.2 Interface compared to criteria 27

Figure 4.3 Interface compared to a price of preference 27

Figure 4.4 Interface compared to a memory of preference 28

Figure 4.5 Interface compared to storage of preference 28

Figure 4.6 Interface compared to delivery of preference 29

Figure 4.7 Interface as a result of selection 29

x

LIST OF ABBREVIATIONS

DEA Data Envelopment Analysis

AHP Analytical Hierarchical Process

ANP Analytic Network Process

TCO Total Cost of Ownership

TOPSIS

Solution

Technique for the Order Performance by Similarity to Ideal

MAUT Multiple Attribute Utility Theory

CBR Case-Based-Reasoning

ANN Artificial Neural Network

RAD Rapid Application Development Process

OPM Option Performance Matrix

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CHAPTER 1

INTRODUCTION

1.1 Background :

Choosing the right supplier involves much more than scanning a series of price lists.

This will depend on a wide range of factors such as speed process manager hardest, price and

delaying further to specify the importance of these different factors will be based on your

business' priorities and strategy

Decision making is a key activity and the most important issue in business. Commonly, the

managers locking for reliable and correct forecast for their decisions. To achieve this goal they

should consider scientific criteria. The main problem that facing a decision maker is the

selecting of most appropriate alternative according to at least one goal or criteria from the

alternatives cluster [1].

Nowadays, the interesting of decision makers about supplier selection process has

been rapidly growing because reliable or correct suppliers support in reduction of inventory

costs and the improvement of product quality [2].

For modern organizations and companies the selection of a supplier is become the most

important step in creating a successful alliance. The selection of a suitable supplier is a

significant factor affecting eventual buyersupplier relationship. If the selection process is

completed correctly, a higher quality, longer lasting relationship is more achievable [3].

Supplier selection is the process of finding the appropriate suppliers being able to provide the

purchaser with the right quality products/services at the right price, in the right quantities and

at the right time [4]. Supplier selection includes activities to solve the conflicts between the

buyer and suppliers on the details of products/services.

Most related literatures on supplier selection have been focused on the decision making

approaches. [4] presented a survey of decision methods reported in the literature for

supporting supplier selection process. [5] analysed the decision making methods that have

been utilized for supplier selection based on journal articles from 2000 to 2008. Then,

frequently used of AHP method to solve the multi-criteria decision-making problem of

supplier selection is proposed by [6, 7, 8, and 9].

This project focuses on Analytical Hierarchical Process (AHP) which is a decision

making method developed for prioritizing alternatives when multiple criteria must be

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considered and allows the decision maker to structure complex problems in the form of a

hierarchy, or a set of integrated levels. This method incorporates qualitative and quantitative

criteria. The hierarchy usually consists of three different levels, which include goals, criteria,

and alternatives. Because AHP utilizes a ratio scale for human judgments, the alternatives

weights reflect the relative importance of the criteria in achieving the goal of the hierarchy

The AHP Advantages can be summarized are as follows:

Unity can construct single, easily understood, flexible models for a broad range of

unstructured problems.

Hierarchic Structuring utilizes the natural tendency of people to sort elements of a system

into different levels and to group like elements.

Consistency - does not require judgments to be consistent.

Synthesis determines the relative importance of the criteria in meeting a goal.

Process Repetition - enables the refinement of the definition of a problem; improves judgment

and understanding through repetition.

1.2 Statement of The Problem:

Supplier selection decisions are usually dependent upon various criteria; however

decision maker usually focuses only on the price of materials or services only. Supplier

selection process may contain huge number of suppliers which takes time and need a lot of

effort to make the right decision. Any biased and poor decision might be made would

negatively influence the whole business in the organization.

1.3 Objectives:

The main objective of this project is to develop a supplier selection model based on

Analytical Hierarchy Process model (AHP). The proposed model should:

Support decision making by provide a judgment of supplier selection with a highly

confidence.

Reduce consuming of time, effort, and increase the quality in the supplier selection process.

1.4 The AHP Method :

The AHP Method Steps Can be Summarized as:

Step 1: Model the problem as a hierarchy containing the decision goal, the alternatives for

reaching it, and the criteria for evaluating the alternatives.

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Step 2: Establish priorities among the elements of the hierarchy by making a series of

judgments based on pairwise comparisons of the elements. For example, when comparing

potential purchases of commercial real estate, the investors might say they prefer location over

price and price over timing.

Step 3: Synthesize these judgments to yield a set of overall priorities for the hierarchy. This

would combine the investors' judgments about location, price and timing for properties A, B,

C, and D into overall priorities for each property.

Step 4: Check the consistency of the judgments.

Step 5: The final decision based on the results of this process

1.5 Layout :

This project is documented in 3 chapters. Chapter one introduces the research problem

and objectives. Chapter two will give an introduction to decision-making, and provide a

discussion about the supplier selection, the model Analytical Hierarchy Process (AHP) that we

have applied, In lastly the chapter three, will explain the methodology.

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CHAPTER 2

BACKGROUND AND LITERATURE REVIEW

One of the most important processes performed in organizations today is the

evaluation, selection, and continuous improvement of suppliers. This review first will include

the general framework used in the supplier selection process and the different types of

suppliers. Next, some of the existing methods of supplier selection are discussed followed by a

supplier evaluation system, several software packages useful for these processes are presented.

2.1 Decision Making

The decision-making process a major activity practiced daily by managers regardless

of their administrative levels, but the degree of importance of the decision varies depending on

the levels. There are two types of decision-making first programmed a repetitive nature and

decisions is programmed with a new character and undefined. There are two entrances to the

two decision-making individual decisions entrance and the entrance to regulatory decisions, as

well as quantitative approaches to decision-making and according to specific criteria, and that

all these approaches is a guide for decision-makers to take decisions properly and correctly.

2.2 Supplier Selection

The supplier selection function in modern enterprises and organizations is more

complicated process in which including the process of selecting the following criteria: quality,

delivery performance, production facilities, warranty claims, price and technical capabilities

need to be applied [10].

Some authors have identified several criteria for supplier selection, such as the net

price, quality, delivery, historical supplier performance, capacity, communication systems,

service, and geographic location, among others [11, 12]. These criteria are a key issue in the

supplier assessment process since it measures the performance of the suppliers.

In general, this research intends to provide empirical evidence of the criteria and the

procedures for the supplier selection process used in different corporate environments. Finally,

identify the suitability of the Analytical Hierarchical Process (AHP) to assist in decision

making to resolve the supplier selection problem.

The Analytic Hierarchy Process is a systematic method widely used for decision

problems with many criteria and alternatives first developed by [13]. It is a tool used for

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solving complex decision problems that may have correlations among decision criteria based

on three principles: decomposition, comparative judgments and synthesis of priorities.

Traditionally organizations have been divided in operative functions such as

marketing, planning, production, purchasing, finance, etc. Supply chain is a strategy that

integrates these functions creating a general plan for the organization, which satisfies the

service policy, maintaining the lowest possible cost level due the incredible competition

environment that they are exposed to. A supply chain is a network of departments, which is

involved in the manufacturing of a product from the procurement of raw materials to the

distribution of the final products to the customer.

2.3 Supplier Selection Process :

Experts agree that no best way exists to evaluate and select suppliers, and thus

organizations use a variety of approaches. The overall objective of the supplier evaluation

process is to reduce risk and maximize overall value to the purchaser. An organization must

select suppliers it can do business with over an extended period of time.

Supplier evaluations often follow a rigorous, structured approach through the use of a survey.

An effective supplier survey should have certain characteristics such as comprehensiveness,

objectiveness, reliability, flexibility and finally, has to be mathematically straightforward. To

ensure that a supplier survey has these characteristics is recommended a step-by-step process

when creating this tool.

2.4 Supplier Selection Methods :

There are several supplier selection methods and multi-criteria decision making, therefore,

It is difficult to find the best method evaluate and select the best supplier, thus, the most

important issue in the process of supplier selection is to develop a suitable method to select the

right supplier [14]. Many authors proposed and used have been developed different methods

for supplier evaluation and selection. These are; linear weighted models, total cost models,

mathematical programming models, statistical models and artificial intelligent (AI) based

techniques.

In linear weighted models, each criterion is being weighted and suppliers performance

is multiplied by this weight for each criteria. The sum of these multiplications represents the

total performance of supplier. Although it is a very simple method, it depends heavily on

human decision and also weights the attributes equally, which rarely happens in practice. It is

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divided as categorical method, weighted point model (linear weighted model) and analytical

hierarchy process (AHP) model. In categorical method, the criteria are weighted equally and

the decisions by made with this method are subjective. In weighted point model, because of

the total criteria performance, the criterion with low performance is not taken into account. In

AHP model, human decision forms the main structure of comparison matrices.

Total cost models are complex methods which depend to cost. They consider not only

the products rate but also, indirect item cost. It is divided as cost ratio method and ownership

total cost model. The cost ratio method is not widely used in companies because it requires a

comprehensive cost accounting system which is only to be found in large scaled companies

and has a complex structure. In ownership total cost model, the potential risk is available

during the supplier selection process, the subjectivity cannot be removed.

Mathematical models are used to represent the complex structure of supplier selection

and have been widely used for modeling selection and allocation problems. On the other hand,

Mathematical Programming (MP) models cause a significant problem in considering

qualitative factors. The drawback of MP is that it requires arbitrary aspiration levels and

cannot accommodate subjective attributes. Supplier selection is a Multiple-Attribute Decision-

Making (MADM) problem. The decisionmakers (DMs) always express their preferences on

alternatives or on the attributes of suppliers, which can be used to help rank the suppliers or

select the most desirable one. The preference information on alternatives of supplier and on

attributes belongs to the DMs subjective judgments. In conventional MADM methods, the

ratings and weights of the attributes are known precisely. Generally, DMs judgments are

often uncertain and cannot be estimated by an exact numerical value. Thus, the problem of

selecting suppliers has many uncertainties and becomes more difficult. In conventional

MADM methods, the ratings and the weights of attributes must be known precisely. However,

in many situations DMs judgments are often uncertain and cannot be estimated by an exact

numerical value [15]. The most used are: linear programming, integer programming, mixed

integer programming, multi criteria programming and goal programming.

For using the statistical approaches, it is essential to reach implicit and accurate

knowledge about suppliers. Obtained knowledge about previous performances of suppliers are

significant for the usage of these models. The common models are classification analysis and

fundamental components analysis.

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Also, the methods such as data envelopment analysis, neural networks, fuzzy set

theory, and analytic network process and quality function deployment are used for supplier

selection.

2.5 The Analytic Hierarchy Process :

The analytic hierarchy process (AHP) is a mathematical multi-criteria decision-making

method (MCDM) for dealing with multi-attribute and unstructured problems. It was proposed

by [13], the author of the celebrated AHP method, has recently been gaining widely used and

popular. AHP is conceptually easy to use; however, it breaks down a complex problem into

several levels in order to generate a hierarchical structure with unidirectional hierarchical

relationships between levels. This structured hierarchy aim to determine the impact of the

lower level on an upper level, and this is attained by paired comparisons provided by the

decision-maker. The upper level represents the main goal of the decision problem, whereas the

lower levels of the hierarchy represent the tangible and/or criteria, sub-criteria and alternatives

that contribute to the goal Figure1

.

Figure 2.1 The general AHP hierarchy

(http://en.citizendium.org/wiki/Analytic_Hierarchy_Process)

There are many outstanding works that have been published based on AHP: these

works applied AHP in different fields, such as selecting a best candidate as in our case,

evaluation, resource allocations, planning, , resolving conflicts, benefits cost analysis,

optimization, forecasting, etc., as well as priority and ranking.

The AHP divides the decision problem into three main steps:

Problem structuring.

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Assessment of local priorities.

Calculation of global priorities.

First, the problem is structured hierarchically, i.e. the decision maker constructs the

hierarchies of factors for solving the decision problem. The overall goal is represented by the

upper level of the hierarchy; one or more intermediate levels correspond to the hierarchy of

the decision criteria, while the lower level consists of all considered alternatives.

The term local priority is used both for the weights of the criteria and sub-criteria and

for the rating scores of the alternatives. The assessment of local priorities is performed after

the decision maker provides his preferences by pair wise comparisons among factors in each

level of the hierarchy. Saaty introduced in [13] a nine-point numerical scale to represent the

relative degree of importance for two factors, where the value of 1 stands for equally

preferred, the value of 2 stands for equally to moderately preferred and so forth up to the

value of 9 that stands for extremely preferred. After the comparisons have been per-formed,

a pair-wise comparison matrix A is constructed, in which element Aijof the matrix is the

relative importance of the ith factor with respect to the jth factor at the same level of the

hierarchy. Obviously, the relation Aij=1/Ajialways holds and therefore A is a positive

reciprocal matrix:

A =

The values of weights Wiof the criteria may be obtained from the comparison matrix

by applying a prioritization technique such as the Eigenvector analysis, the Logarithmic Least

Squares method, the Goal Programming method or the Fuzzy Programming method [16-19].

The values of the rating score Riof the alternatives are also obtained from the comparison

matrix for each criterion corresponding to the alternatives in the lower level of the hierarchy.

2.6 How AHP Works

The AHP offers a methodology to rank alternative courses of action based on the

decision makers judgments concerning the importance of the criteria and the extent to which

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they are met by each alternative. For this reason, AHP is ideally suited for the supplier

selection problem.

The problem hierarchy lends itself to an analysis based on the impact of a given level

on the next higher level. The process begins by determining the relative importance of the

criteria in meeting the goals. Next, the focus shifts to measuring the extent to which the

alternatives achieve each of the criteria. Finally, the results of the two analyses are synthesized

to compute the relative importance of the alternative in meeting the goal.

Managerial judgments are used to drive the AHP approach. These judgments are

expressed in terms of pair wise comparisons of items on a given level of the hierarchy with

respect to their impact on the next higher level. Pair wise comparisons express the relative

importance of one item versus another in meeting a goal or a criterion. Each of the pair wise

comparisons represents an estimate of the ratio of the weights of the two criteria being

compared. Because AHP utilizes a ratio scale for human judgments, the alternatives weights

reflect the relative importance of the criteria in achieving the goal of the hierarchy.

2.7 AHP Details

The use of the AHP approach offers a number of benefits. One important advantage is

its simplicity. The AHP can also accommodate uncertain and subjective information, and

allows the application of experience, insight, and intuition in a logical manner.

The AHP approach, as applied to the supplier selection problem, consists of the

following five steps [20]:

1. Specify the set of criteria for evaluating the suppliers proposals.

2. Obtain the pair wise comparisons of the relative importance of the criteria in

achieving the goal, and compute the priorities or weights of the criteria based on

this information.

3. Obtain measures that describe the extent to which each supplier achieves the

criteria.

4. Using the information in step 3, obtain the pair wise comparisons of the relative

importance of the suppliers with respect to the criteria, and compute the

corresponding priorities.

5. Using the results of steps 2 and 4, compute the priorities of each supplier in

achieving the goal of the hierarchy.

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CHAPTER 3

METHODOLOGY

This project is based on the Waterfall model of Systems Development Life Cycle

(SDLC) methodology whereby construction of the system flows from top to bottom. It is a

structured sequential design process. The phases in the development cycle consist of

feasibility study, systems analysis and requirements, system design, implementation and

testing phases. Deliverables include system codes and this system documentation.

The Waterfall model of Systems Development Life Cycle (SDLC) methodology is

mainly based on in this project as shown in Figure2.

Figure 3.1 SDLC waterfall methodology

(http://businessobjectsforum.blogspot.com/2008/09/data-modeling-concepts-

chapter-1.html)

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Table 1 illustrates the proposed project phases and the description of each phase.

Phase Description

Project planning, feasibility

study

A high-level view of the intended project is

established.

Systems analysis, requirements

Definition

End-user requirements are identified

and analyzed.

System design Desired features and operations are described in

detail, including screen layouts, business rules,

process diagrams and other documentations.

Implementation Real code of the system is written.

Testing System is presented and errors and bugs are checked.

Table3. 1 Project Phases

3.1 Planning

The planning phase means project initiation. The planning phase will take part in the

first semester. The main activities that will be executed during the planning phase include

AHP application model.

And we'll select the required standards according to the requirements of the system and

the application of the model to the data. We apply the selection system supplier to make sure

you apply it correctly and give satisfactory results.

The first important issue in this project is to collect related data. First a conceptual

model including data on the University of Tabuk for 3 supplier attempt 5 criteria that is

typically used for determine the best supplier such as :( Processor, Memory, Intstorage, Price

and delivery) so the decision depend on this criteria. Table 2 shows the selected criteria for the

3 supplier.

S1 S2 S3

Processor 1.86 3.66 1.86

Memory 1024 2000 1024

Int-storage 146.8 440.4 146

Price 20352 48200 25320

Delivery 4 3 6

Table: 3. 2 The test data

The main objective of this phase is to gathering the data and to gain full understanding

regarding all components. The planning phase is vital as it is the foundation for the project and

the planning phase will determine the course of direction for the project.

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3.2 Analysis

AHP method is a good choice for handling our gathered data. AHP is the one of the

most systematic analytical techniques of MCDM within the framework of operational research

techniques that facilitates a rigorous definition of priorities and preferences of DMs. It is

widely used as an analytical tool in various fields of studies. Broadly the technique considers

the following steps during modeling of any system under consideration:

(a) Defining a site-specific hierarchic structure;

(b) Calculating weights.

(c) Compared the ratios.

Figure 3.2 Hierarchy of the AHP example

First in the analysis phase and should be available to us are three elements to the

system we design, a methodology, and suppliers, and services suppliers.

Methodology that has been identified is a rapid application development, and here we

chose model (AHP) as hosts previously and our goal is to help in the consumption of time.

Suppliers: suppliers must be available to enter the competition for the tender under the

terms of the tender, and in our system we have three suppliers are the ones who lose access to

the tender.

Services Suppliers: represented in the services they provide, as requested by the

company's existing tender In our experience the company needs computer hardware and

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focused on five criteria and provide enough information about to enter into the selection

process which (Processor, Memory, Int-storage, Price, Delivery) as hosts in the Table 2 and

we'll build the system according to these basics.

3.3 Design

The design phase will focus on the design of tables and equations, through which we

will apply the AHP model.

3.3.1 Model formulation

The AHP approach, which applied to the supplier selection problem, consists of the

following steps:

i. Specify the set of criteria for evaluating the suppliers proposals.

ii. Obtain the pair wise comparisons of the relative importance of the criteria in

achieving the goal, and compute the priorities or weights of the criteria based on this

information.

iii. Obtain measures that describe the extent to which each supplier achieves the criteria.

iv. Using the information in step 3, obtain the pair wise comparisons of the relative

importance of the suppliers with respect to the criteria, and compute the

corresponding priorities.

v. Using the results of steps 2 and 4, compute the priorities of each supplier in

achieving the goal of the hierarchy.

Assume there are 5 criteria that are being used to evaluate 3 suppliers. This will be

applied by steps for the selected scale in the model of AHP:

Table: 3.3 MEASUREMENT SCALE3 AHP Measurement scale

Verbal Judgment of Preference Numerical Rating

Extremely Prefered 9

Very Strongly Prefered 7

Strongly Prefered 5

Moderately Prefered 3

Equal y Preferred 1

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The buyer must now develop a set of pair wise comparisons to define the relative

importance of the criteria to complete the following matrix (Table 4). Table 4 AHP Example:

Original Matrix

Processor Memory Int-storage Price Delivery

Processor 1 3 7 9 9

Memory 0.33 1 5 9 9

Int-storage 0.14 0.2 1 5 7

Price 0.11 0.11 0.2 1 3

Delivery 0.11 0.11 0.14 0.33 1

Total 1.69 4.42 13.34 24.33 29

Table:3. 4 AHP Example: Original Matrix

The data in the matrix can be used to generate a good estimate of the criteria weights.

The weights provide a measure of the relative importance of each criterion.

This process is summarized in the following three steps, and shown in the Table 5:

1. Sum the elements in each column.

2. Divide each value by its column sum.

3. Compute row averages

Processor Memory Int-storage Price Delivery Weights

Processor 0.591716 0.678733 0.52473763 0.369914 0.310345 0.495089

Memory 0.195266 0.226244 0.37481259 0.369914 0.310345 0.295316

Int-

storage

0.08284 0.045249 0.07496252 0.205508 0.241379 0.129988

Price 0.065089 0.024887 0.0149925 0.041102 0.103448 0.049904

Delivery 0.065089 0.024887 0.01049475 0.013564 0.034483 0.029703

Total 1 1 1 1 1 1

Table3. 5 AHP Example: Normalized Matrix

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Next, the three suppliers must be compared pair wise for each criterion. This process is

virtually identical to the procedure that was used to develop the criteria comparison

matrix. The only difference is that there is a supplier comparison matrix for each

criterion. Therefore, the decision maker compares each pair of suppliers with respect to

the quality criterion, as shown in Table 6:

Supplier1 Supplier2 Supplier3

Supplier1 1 0.33 1

Supplier2 3 1 3

Supplier3 1 0.33 1

Total 5 1.66 5

Table:3. 6 AHP Example: processer matrix

Supplier1 Supplier2 Supplier3 Weights

Supplier1 0.2 0.19879518 0.2 0.199598

Supplier2 0.6 0.60240964 0.6 0.600803

Supplier3 0.2 0.19879518 0.2 0.199598

Total 1 1 1 1

Table :3.7 AHP Example: Normalized processer matrix

Furthermore, the memory criterion is compared with each pair of suppliers (Table 8 and

Table 9):


Supplier1 1 0.2 1

Supplier2 5 1 5

Supplier3 1 0.2 1

Total 7 1.4 7

Table:3. 8 AHP Example: memory matrix

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Supplier1 0.142857 0.142857 0.142857 0.142857

Supplier2 0.714286 0.714286 0.714286 0.714286

Supplier3 0.142857 0.142857 0.142857 0.142857

Total 1 1 1 1

Table:3. 9 AHP Example: Normalized memory matrix

Also, the service criterion is compared with each Int-storage of suppliers (Table 10 and

Table 11):


Supplier1 1 0.2 3

Supplier2 5 1 7

Supplier3 0.34 0.14 1

Total 6.34 1.34 11

Table:3. 10 AHP Example: Int-storage matrix


Supplier1 0.157729 0.1492537 0.272727 0.193237

Supplier2 0.788644 0.7462687 0.636364 0.723759

Supplier3 0.053628 0.1044776 0.090909 0.083005

Total 1 1 1 1

Table :3.11 AHP Example: Normalized Int-storage matrix

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Consequently, the Price criterion is compared with each pair of suppliers (Table 12

and Table 13):


Supplier1 1 9 5

Supplier2 0.11 1 0.11

Supplier3 0.2 9 1

Total 1.31 19 6.11

Table :3.12 AHP Example: Price matrix


Supplier1 0.763359 0.473684 0.818331 0.685125

Supplier2 0.083969 0.052632 0.018003 0.051535

Supplier3 0.152672 0.473684 0.163666 0.263341

Total 1 1 1 1

Table:3. 13 AHP Example: Normalized Price matrix

Consequently, the delivery criterion is compared with each pair of suppliers (Table 14

and Table 15):


Supplier1 1 0.34 3

Supplier2 3 1 5

Supplier3 0.34 0.2 1

Total 4.34 1.54 9

Table :3.14 AHP Example: Delivery matrix

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Supplier1 0.230415 0.220779 0.333333 0.261509

Supplier2 0.691244 0.649351 0.555556 0.63205

Supplier3 0.078341 0.12987 0.111111 0.106441

Total 1 1 1 1

Table:3. 15 AHP Example: Normalized delivery matrix

The final step of the AHP analysis is summarized in Table 16.

Processor Memory Intstorage Price Delivery score

Supplier1 0.098819 0.042188 0.0251184 0.03419 0.007768 0.208083

Supplier2 0.297451 0.21094 0.0940797 0.002572 0.018774 0.623817

Supplier3 0.098819 0.042188 0.0107896 0.013142 0.003162 0.164938

Table:3. 16 AHP Example: Summary of Results

According to the previous results, the higher weight belongs to supplier 2, and is

judged to be the best overall.

Among the decision support methods, application of the AHP method to the supplier

selection problem is not new in the artisan be conducted with multi objective such as

neural network or expert system so we can related with other techniques . We apply the

AHP model in vb.net program and we link it with Excel and we'll show you in the next

chapter some forms after completion of the system.

3.4 Implementation

In the implementation phase, we will clarify the equations that have been applied in the

previous tables.

a) Preparation A norm natural matrix by a process of division of each element in

the matrix A in column i to the sum of all elements in the same column as

follows:

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Rij= aij/ . (1)

I = 1, 2..N

Rij: Natural element of the matrix Anorm

We apply this equation to the previous tables of matrixes

b) Calculate weights matrix "W", if you represent these weights vectors

preference among alternatives according to the criteria, for example, calculates

the weight of the row (i), which represents a variant of the matrix "W" grade

average of the elements of the matrix A also comes:

Wi= (1/N) .. (2)

Wi : Represents the preference vector Or What called Priority vector.

I = 1, 2..N

We apply this equation to the previous tables of Normalized.

We will show in the next chapter the results after the design of the program and associate

it with these equations.

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3.5 Requirements Analysis

3.5.1 Use case

Figure 3.3 login use case

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4. Use Case Specifications

4.1 Log in use case

Use Case ID: 1

Use Case Name: Log in

Actors: User

Description: A user has to enter to the system before

work in the system.

Post conditions: 1. user enter to main menu in the system

Normal Flow: 1. user open the system icon

2. System prompt form user his username

and password and confirms it.

3. System verify the data

4. main screen show

5. use case end

3.if user is valid the system will show

main menu.

Alternative Flows: 1.

Exceptions: E.1 Incorrect Username/Password 1.

System prompts user to re-type

username/password.

2.User re-enters username/password.

Includes: None

Table: 4.1 Log in

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4.2 Compared to criteria use case

Use Case ID: 2

Use Case Name: Compared to criteria

Actors: User

Description: A user select Compared to criteria as

first step in the select supplier process

Post conditions: 1. user enter every criteria value

Normal Flow: 1. User choose to Compared to criteria

2. System display Compared to criteria

screen

3.user select every criteria value

4.user save data

5.use case end


Exceptions: E.1 empty data 1. System prompts user to

re-enter criteria value

Includes: None

Table: 4.2 Compared to criteria

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4.3 Compared every criteria of preference

Use Case ID: 3

Use Case Name: Compared every criteria of preference

Actors: User

Description: A user select Compared every criteria of

preferences second step in the select

supplier process

Post conditions: 1. user enter suppliers criteria value

Normal Flow: 1. User choose to Compared every

criteria of preference

2. System display Compared every

criteria of preference screen

3.user select every supplier value for

criteria

4.user save data

5.use case end


Exceptions: E.1 empty data 1. System prompts user to

re-entercriteria value

Includes: None

Table: 4.3 Compared every criteria of preference

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4.4 View result use case

Use Case ID: 4

Use Case Name: view result

Actors: User

Description: A user select view result of the best

suppliers

Post conditions: 1. system display every supplier and his

rank

Normal Flow: 1. User choose to view result

2. System display suppliers list and their

rank

3.use case end


Exceptions:

Includes: None

Table: 4.4 View result

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5. Database table

5.1 Users table

Field name Data type Key Null value Default value

ID Int primary key not null

user_nam nvarchar(50) not null

user_passward nvarchar(50) not null

Table:5.1 User Table

Field name Data type Key Null value Default value

SUPPLIER_id Int primary key not null

SUPPLIER_name nvarchar(40) not null

SUPPLIER_address nvarchar(50) null

SUPPLIER_email nvarchar(40) null

SUPPLIER_phone nvarchar(15) null

SUPPLIER_mobile nvarchar(15) null

SUPPLIER_fax nvarchar(15) null

SUPPLIER_notes nvarchar(100) null

Table:5.2 User Table

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Chapter 4

DESIGN

4.1 Design

We will in this section the system design will be illustrated

4.1. User log in

Figure 4.1 main interface

The use log in screen allow users to enter the system after verify their user name and password

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4.2. Compared to criteria

Figure 4.2 Interface compared to criteria

Compared criteria screen user depend on the decision-making process.

4.3. compared to a price of preference screen

Figure 4.3 Interface compared to a price of preference

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4.4. Compared to a memory of preference screen

Figure 4.4 Interface compared to a memory of preference

4.5. Compared to storage of preference screen

Figure 4.5 Interface compared to storage of preference

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4.6.Compared to delivery of preference screen

Figure 4.6 Interface compared to delivery of preference

4.7.Result of selection screen

Figure 4.7 Interface as a result of selection

Finally, as shown when the button is pressed out to get out of the system note that the last

result to be reserved in the system when you log on to the system again put pressure on the

button get result And introduce us to the last saved result.

30

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