An approach for prioritizing supplier selection criteria through consensus building using Analytic Hierarchy Process and Fuzzy set theory

Purchasing management is a key process in the iron and steel industry since it impacts the overall performance of the firm. In this study, first the critical yet generic supplier evaluation criteria have been identified for the iron and steel industry. Subsequently the application of an integrated model of Fuzzy set theory and Analytic Hierarchy Process has been highlighted for the prioritization of these evaluation criteria. Data has been collected from procurement experts and experienced practitioners and consensus achievement models have been used for the prioritization of these supplier evaluation criteria. After the achievement of consensus, these supplier selection criteria have been ranked based on their importance to the procurement practitioners. It was found that product quality had the highest priority followed by delivery compliance, price, production capability, technological capability, e-transaction capability and financial strength of the supplier, in order of priority to these decision makers.