AHP_Practice_Exercise

AHP_Practice_Exercis - SCM 371 Procurement and Supply Management Fall 2011 AHP Exercise You have been given the task of selecting one of three new

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1 SCM 371 – Procurement and Supply Management – Fall 2011 AHP Exercise You have been given the task of selecting one of three new automated order fulfillment systems based on five criteria: (A)Performance, (B)Savings, (C)Serviceability, (D)Engineering Effort, and (E)Risk (lack of). One of your colleagues has begun an AHP analysis and calculated the preference matrix using Saaty’s scale as follows: Attribute Preference Matrix A B C D E A 1 1/3 5 6 5 B 3 1 6 7 6 C 1/5 1/6 1 3 1 D 1/6 1/7 1/3 1 1/4 E 1/5 1/6 1 4 1 You asked specialists in your company to review the automated order fulfillment system from each vendor (V1, V2 and V3) based on each criterion. After reviewing the comments from your firm, you surmise the following: With regard to performance (A), vendor 1 (V1) is identical to vendor 3 (V3). Vendor 2 (V2) is moderately preferred to vendor 1 (V1). Vendor 2 (V2) is equally to moderately preferred over vendor 3 (V3). With regard to savings (B), the system sold by vendor 1 (V1) will save the firm an estimated $300M,
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This note was uploaded on 12/29/2011 for the course SCM 371 taught by Professor Tobias during the Fall '11 term at Michigan State University.

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