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Addressing the supplier selection problem by using the analytical hierarchy process.

Mehedi Hasan Manik1

  • 1Marketing Insights, Advanced Chemical Industries (ACI) Limited, Dhaka, Bangladesh.

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|July 31, 2023
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Summary
This summary is machine-generated.

ACI Pharma improved its supplier selection for brand promotions using the Analytical Hierarchy Process (AHP). Spark Printers emerged as the top supplier, enhancing objective decision-making in the pharmaceutical supply chain.

Keywords:
Analytical hierarchy processBest alternative selectionCriteria of supplier selection problemLeverage itemMulti-criteria decision-makingPurchasing policySupplier management techniqueSupplier selection in pharmaceutical industrySupplier selection technique

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Area of Science:

  • Supply Chain Management
  • Operations Research
  • Pharmaceutical Marketing

Background:

  • Subjective supplier selection negatively impacted ACI Pharma's brand promotional activities and market share.
  • Existing research often focuses on supplier selection over integrated management and purchasing policies.

Purpose of the Study:

  • To objectively select and manage the optimal printing material supplier for ACI Pharma using a structured methodology.
  • To address the limited application of complex decision-making tools in the pharmaceutical supply chain, especially in developing economies.

Main Methods:

  • The Analytical Hierarchy Process (AHP), a Multi-Criteria Decision-Making (MCDM) technique, was employed for supplier evaluation.
  • Ten printing suppliers were assessed based on five key attributes: cost, quality, delivery, flexibility, and communication.

Main Results:

  • Spark Printers was identified as the best supplier for ACI Pharma, achieving the highest score of 0.968.
  • Marvelous Printers Limited and Lutfur Enterprise were ranked as the second and third-best suppliers, respectively.

Conclusions:

  • The study demonstrates the effective application of AHP for objective supplier selection and management in the pharmaceutical industry.
  • The findings offer a practical, industry-friendly approach for organizations facing similar supplier management challenges.