Subcontractor Selection Using Analytic Hierarchy Process

Article Information

Business and Economics Research Journal
Title of Article: Subcontractor Selection Using Analytic Hierarchy Process
Author(s): Vesile Sinem Arikan Kargi, Ahmet Ozturk
Volume: 3
Number: 3
Year: 2012
Page: 121 – 143
ISSN: 1309-2448


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 Yeşim 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 Yeşim 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 Yeşim were determined based on the model results. In addition, these results were analyzed for the firm’s decision makers.

Keywords:Analytical hierarchy process (AHP), Decision making, Multi criteria analysis, Contractor, Subcontractor

JEL Classification:C44, D81, L29 Full Text