Application of the Analytic Hierarchy Process and Grey Relational Analysis for Vendor Selection of Spare Parts Planning Software

Abstract

The success of after-sales services fundamentally depends on the possibility of symmetry balancing needs, supply and customer satisfaction. Spare parts planning (SPP) software selection is an investment in balancing the symmetry of inventory control, which directly affects the success of after-sales services. This paper presents the analytic hierarchy process (AHP) and grey relational analysis (GRA) as potential multi-criteria decision making (MCDM) methods for software selection. The application of these methods can be decreased by decision-makers’ subjectivity, which leads to consistency and symmetry in the weight values of the criteria. The criteria were evaluated solely based on system functions by business consultants with respect to the modularity of the software to meet various business requirements, distinguishing this paper from other papers that focus on the financial aspects of selecting software. The results suggest that the AHP and GRA are feasible methods for software selection that effectively integrate consultants’ experience to identify the suitable software and the most important function for adoption in real businesses. The findings of our data suggest that inventory optimization is the most important function of SPP software, as the demand forecasting function may be subjective. In conclusion, this paper represents a bridge between practitioners and researchers.