Supplier selection and evaluation – An integrated approach of QFD & AHP

In current scenario strong competitive pressure forces several organizations to available their products and services, cheaper, faster and improved than the rivals to their valuable customer. Managers have come to comprehend that they cannot do it individually without suitable vendors. Supply Chain Management empower the flows of material, information and funds in a association consisting of customers, suppliers, manufacturers and distributors, which beings raw materials, maintain by internal operations complete with distribution of finished goods. In the continually changing world, assortment of appropriate vender is facilitating in supply chain management, selection of right vendor is extremely useful part of purchasing department. This paper seeks to propose a methodology to integrate the Analytical Hierarchy Process (AHP) for right supplier selection and evaluation and Quality Function Deployment (QFD) analysis to enhance the effectiveness of outsourcing decisions. A selection that combines the subjective factors and objective factors and attitude of the decision maker decide the best supplier in the supply chain management system. The proposed integrated model could be used for supplier selection, which involves several quantitative and qualitative factors. Also could be used to determining the optimum order quantity. The propose method is a group decision making approach which shadows the traditional approaches of supplier selection.