ANALYSIS OF SUSTAINABLE SUPPLIER SELECTION BY MEANS OF ANALYTICAL HIERARCHY PROCESS (AHP) METHOD

Abstract

One of the critical factors that can enable enterprises to improve their supply chain performance and thus prevail over to their competitors is to work with appropriate suppliers. In this context, the selection of the most suitable supplier is a major problem for enterprises. This problem becomes even more complicated, especially for enterprises that want to integrate sustainability in their supply chain processes. Businesses that adopt sustainability must ensure that environmental and social criteria as well as traditional criteria, such as price and quality are applied not only in their own processes but also in the processes of their suppliers. At that point, the problem of sustainable supplier selection arises. In line with this understanding, the aim of this study, is to carry out the selection of a supplier of a construction company based on sustainability approach. Analytical Hierarchy Process (AHP) method, which is frequently used in similar studies, has been used to determine the most suitable supplier. Sensitivity analysis has been performed for control purposes. As a result of the analysis of data obtained from the company, the most suitable one among the three companies that supply pvc (poly vinyl chloride) windows has been selected.