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Track 1 Session 4
2:10 to 3:10 p.m. Wednesday,
October 22, 2008
The Effectiveness of Using AHP in Supplier Management Strategic Activities
Analytical Hierarchy Process (AHP) had great impact in improving the decision making process in various levels of reducing the uncertainness of both centralized and decentralized decisions. Using this tool frequently in
the Procurement Process has proved its effectiveness in decision making and ranking of alternatives.
This presentation focus on Project Procurement Management with individual highlights on the Seven Strategic Activities: 1) Strategic sourcing analysis, 2) Proactive demand management, 3) Acquisition pre-contract, 4) Request
supplier's response, 5) Select suppliers, 6) Contract administration, and 7) Acquisition post contract. This presentation also describes
how effectively implementing AHP in these strategic activities improved the overall system reliability,
and provides a suggested solution as to how to overcome the common inconsistency in AHP inputs.
Key Words: Analytical Hierarchy Process (AHP), method of combined radix, Reliability Management, Supplier Management, Project Procurement
Mohamed F. El-Nassery
Mantrac Unatrac Group - Caterpillar Dealer |
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