A fuzzy-AHP multi-criteria decision making model for procurement process

The purpose of this study is to develop a fuzzy-AHP multi-criteria decision making model for procurement process. It aims to measure the procurement performance in the automotive industry. As such measurement of procurement will enable competitive advantage and provide a model for continuous improvement. The rapid growth in the market and the level of competition in the global economy transformed procurement as a strategic issue; which is broader in scope and responsibilities as compared to purchasing. This study reviews the existing literature in procurement performance measurement to identify the key areas of measurement and a hierarchical model is developed with a set of generic measures. In addition, a questionnaire is developed for pair-wise comparison and to collect opinion from practitioners, researchers, managers etc. The relative importance of the measurement criteria are assessed using Analytical Hierarchy Process (AHP) and fuzzy-AHP. The validity of the model is confirmed with the results obtained.