APPLICATION OF THE ANALYTIC HIERACHY PROCESS (AHP) IN SELECTING SUPPLIERS OF WOODEN FURNITURE INDUSTRY: A CASE STUDY OF XYZ COMPANY

Ananya  Banyongpisut; Sirion  Son-ong

Ananya Banyongpisut Suan Sunandha Rajabhat University
Sirion Son-ong Suan Sunandha Rajabhat University

Keywords: Analytic Hierarchy Process (AHP), Selecting Suppliers in Wooden Furniture Industry, Wooden Furniture

Abstract

This study has the objective of selection to suppliers in wooden furniture industry:
A case study of XYP company. And to study selection to suppliers in wooden furniture
industry: A case study of XYP company with application of the analytic hierarchy process
(AHP). To use expert choice software program to calculate the factors to select suppliers of
suppliers in wooden furniture industry. This research is qualitative research which includes
exploratory research with In-depth interview using semi-structured interview form with key
informants which includes business owner, company manager and specialist in procurement
and sales. Content validity is used to measure precision and cover according to the content by
collecting data to compare and determine the weight of each factor by assessing the consistency
of decisions in the order of alternative factors, as well as analyzing the sensitivity to changes
of key factors using the expert choice package and synthesizing the results of the decision
making of suppliers in wooden furniture industry according to the guidelines of the Analytic
hierarchy Process (AHP).
The result found that the manufacturing company's non-conformity ratio compared to
all 6 factors is 0.080. And when each factor is taken to find the nonconformity ratio of the
3 supplier companies, it was found that the quality factor the nonconformance ratio value is
0.000. The price factor is non-conformance ratio values 0.001. The delivery factor is non-
conformance ratio values 0.000. The service factor is non-conformance ratio value 0.050.
In conclusion, the calculation results using Analytic Hierarchy Process (AHP) and
Expert Choice software package from both methods are summarized. The weight of all 6
factors and the weight values of all 3 companies differ slightly, so the most suitable wooden
furniture industry for XYZ is Company C, followed by Company B, and finally Company A.