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Exploring critical criteria for compressed natural gas/liquefied petroleum gas (CNG/LPG) kits manufacturer in India: a case study

Published Online:July 1, 2011pp 440-467https://doi.org/10.1504/IJBEX.2011.041061

Abstract

The multi-criteria decision making (MCDM) problem in supplier selection involves a number of qualitative and quantitative attributes which are required to be analysed for evaluating the performance of the suppliers or at the supplier selection stage. This paper presents an integrated methodology for evaluating the supplier selection using analytical hierarchy process (AHP) and linear programming problem (LPP) model. This integrated approach is a two stage process. The first stage identifies the functional weightage scores for the selected suppliers using AHP and the second stage uses LPP, for making an optimal allocation of units to the selected suppliers. The paper shows the application of this methodology for the supplier selection situation, while purchasing the liquefied petroleum gas (LPG) and compressed natural gas (CNG) kits by the automobile manufacturing companies. The selection criteria used in the study includes quantity, on-time delivery product, quality, service, responsiveness, technical capability, production facility and pricing structure.

Keywords

supplier selection criteria, analytical hierarchy process, AHP, linear programming problem, LPP, multi-criteria decision making, MCDM, Indian automobile industry, liquefied petroleum gas/compressed natural gas, LPG/CNG, AHP-LP methodology, India

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