Vendor Selection Problem (VSP) Using Fuzzy Analytical Hierarchy Process (FAHP)

Companies in order to attain the goals of low cost, consistent high quality, flexibility and more customer satisfaction have been increasingly considering better Vendor selection approaches. Vendor selection problem is a Multicriteria Decision Making (MCDM) problems involving high degree of fuzziness. The fuzziness is involved in the multiple criteria used for selecting and ranking the best vendor. The aim of this study is to provide an analytical tool to select the best Vendor. We identify the criteria for selecting vendors and develop a hierarchy through which decision makers can bring about a comparison among the three Vendors by using fuzzy AHP. Using Rembrandt we try to bring about a comparison between the two techniques. We use the same input data for both the techniques.