Abstract

Suppliers are always the business drivers of any manufacturing organization. Their evaluation has assumed a strategic role in deciding the future of an organization. Supplier selection is a di cult process for the management. An organization usually has to select a supplier among several available choices on the basis of different criteria. A number of researches have been devoted to cope with this problem in different industries but less work has been done in electronic industry of Pakistan. There is a need to fi¬nd an effective and precise method for suppliers’ selection in electronics industry. The specific objectives of research study are to select suppliers in electronic industry, to explore factors affecting supplier’s evaluation and selection and to apply Multi Criteria Decision Making (MCDM) technique for supplier selection. In this paper a model based on Analytic Hierarchy Process (AHP) is used to address the problem of supplier selection in electronics industry of Pakistan. In this study six suppliers have been evaluated on given criteria. Through the study it has been identifi¬ed that “Quality” is most important criteria followed by “Cost” and “Reciprocal Arrangements” in supplier evaluation in this specific scenario. In addition to that sensitivity of criteria is also discussed. This study will help the decision makers of electronics industry in selecting best supplier for their organization.