Subcontractor Selection Using Analytic Hierarchy Process

Turkish textile firms work under a heavily competitive atmosphere in terms of prices due to globalization. Firms have to take into consideration several criteria like cost, quality and delivery-on-time in order to survive the global market conditions and to maintain profitability. To meet these criteria, contractor companies have to select the best subcontractor. Therefore, the selection of subcontractor for the contractor company is a problem. The aim of this study is to solve the problem of Ye im Textile, a contractor company, about the selection of the best subcontractor for its customer Nike. To solve the problem, firstly, the main criteria and relevant sub-criteria, which are of importance for Ye im and Nike, were defined. Then, authorities from the firms were interviewed in order to formulate pairwise comparison matrices using the Saaty’s importance scale. In a sense, this matrix is the model of this study. The model, named AHP, was analyzed using the Expert Choice software. Best subcontractors for Ye im were determined based on the model results. In addition, these results were analyzed for the firm’s decision makers.