Selection of Outsourcing Supplier Based on AHP

Abstract

With the development of the economy and society, more and more enterprises outsource the procuring of services or products from an outside supplier or manufacturer in order to cut costs. To realize outsourcing, the outsourcing needer must choose the supplier carefully, so the method that how to choose the right supplier to realize the outsourcing is particularly important. Lots of factors should be taken into account, but the common factors are cost, quality, additional resources, prior works and contract terms. With the qualitative analysis and quantitative analysis method of analytic hierarchy process, put forward the model of the outsourcing. The model includes three aspects: objective layer, criterion layer and alternative layer. The objective layer is the aim of select supplier; the criterion layer is the factors which affect the choice and the alternative layer is the different selectable enterprise. After calculating the synthetic level value to order in single level and whole system and though the consistency check, eventually got the different weights of different alternations, it can provides direct basis for the decision-making, that is, the enterprise which has the biggest weight of the choice should be placed ahead of the others.