THE APPLICATION OF AHP METHOD FOR SUPPLIER SELECTION OF BANGLADESH’S JUTE INDUSTRY: FROM THE PERSPECTIVE OF BOTH PUBLIC AND PRIVATE SECTORS

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Published Aug 17, 2018
Mustafizur Rahman Shuvo Haldar

Abstract

In the competitive global business market, selection of the best supplier plays a vital role for the survival of any manufacturing company. The selection of a good supplier can make it possible for a company to reach the top position in the market. On the other side, the selection of a poor supplier can lead a company to a lower market position or even shutdown. As a developing country, Bangladesh has many very small and extremely large manufacturing companies where supplier selection is not seriously considered. These companies are selecting suppliers in the traditional way by giving priority to cost and quality, which acts as an impediment to their development. In this paper, the Analytic Hierarchy Process (AHP) method is applied in order to find the best supplier for the jute industry in Bangladesh. The study compares the application process of the method from both the public and private sector perspectives. For this purpose, the data are collected from a government factory named “Jessore Jute Industries Ltd” and a private factory named “Ahyan Jute Mills” and their present strategies are compared. This paper recommends to these jute industries that the use of the AHP method in selecting the best supplier can be effective and efficient.

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Keywords

Supplier Selection, Analytic Hierarchy Process (AHP), Multi Criteria Decision Making, Jute Mills.

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