Supplier Prioritization to Manage Logistics Risk Factors using AHP Tool: An Empirical Case Analysis

Israt Sharmin, Umme Nafisa, Amit Das, Tasminur Mannan Adnan


Risk management in logistics is arduous and involves a recondite number of issues such as selecting suppliers, performance of the suppliers, third party, outsourcing and so on. Selecting the best supplier by abating other suppliers has always been a challenge for the production system as there many internal and external vulnerabilities with less analogy. This study assesses the operational risk factors with its plethora of tortuous and downstream partners and develops a model using Analytical Hierarchy Process (AHP) tool. Considering the selection criteria for managing risks, this tool saturates and prioritizes the suppliers. AHP engenders a practical Multi-Criteria Decision Making (MCDM) tool providing the foundation of making a documented decision making. The purpose of this paper is serving a prioritized list of alternative suppliers in a way that if one supplier is unable to sustain and supply materials, the company gets the second option to choose another supplier within no time. Thus, the production system will not be hampered, the risk factors will be minimized and the company will be beneficent.

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