Applying Analytic Hierarchy Process to Supplier Selection

The aim of this research is to focus on real-life application of multiple attribute decision making (MADM) method and its adaptation in a way which can be acceptable for business practice. The study is mainly concerned with multiple criteria decomposition method of analytic hierarchy process (ARP) developed by Saaty (1980). Presented approach is illustrated on a decision making problem of a bicycle lights supplier selection. The aim of the paper is to find the most suitable bicycle lights supplier using ARP. The first part of this paper includes an introduction to the supplier selection. The next part deals with multiple attribute decision making methods especially with the ARP with short review of up to date references. Following part is concerned with the methodology. The results are presented in the final part together with discussion.