Packing Carton Box Suppliers` Evaluation and Selection in Large & Medium Scale Manufacturers of Food Products and Beverages in Addis Ababa City
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Date
2016-05
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Addis Ababa University
Abstract
pplier selection process is a process to select the best supplier that can offer the best deal on
all required criteria among other related suppliers which compete with in the same industry.
Selecting a supplier is not a simple task rather it is a complex problem which involves qualitative
and quantitative multi-criteria. The objective of the study is to recommend the importance of a
multi criteria decision making approach which is analytical hierarchy process (AHP) for
supplier evaluation and selection. To reduce the time and effort in selecting a supplier, a multi-
criteria decision model is used for evaluation and selection of suppliers with the proposed AHP
model by scoring the performance of suppliers. The Analytical Hierarchy Process (AHP) is one
of the various supplier selection approaches that are used to select the appropriate supplier.
Therefore, an AHP supplier selection model is formulated and then applied to a given set of data
for food and beverage manufacturing companies in Addis Ababa. The model provides a clear
step to evaluate four criterion and thirteen sub criteria, depending on its importance in order to
select the right supplier. In this study, probability sampling method is used. In order to undertake
this research, by using simple random sampling techniques sample size of 35 food and beverage
manufacturing industries in Addis Ababa were drawn from the valid target population of the
study which is 39. Primary type of data was collected with the help of standard questionnaires
and SPSS also used for the simple descriptive data to compute the percentage scores of each
criterion and sub criteria. Summary of the findings of the study indicate that among the selected
four criteria, quality is the first or best supplier selection criterion followed by price, delivery
and service in respectively and among the suppliers considered in the study, Burayu Packaging
and Printing Industry is the most preferred supplier followed by Ethiopian Pulp and Paper
,Unlimited Packaging and Minaye Packaging in respectively. Based on the findings the
researcher recommended food and beverage manufacturing companies to give a high emphasis
for quality during purchasing of packaging materials so as to save the overall implicit and
explicit costs of companies and better to have a long term business relationship supply chain
agreement with Burayu Packaging and Printing Industry or the next most preferred supplier
which is Ethiopian Pulp and Paper so as to save a sustainable and consistent packaging supply.
Key words: Supplier selection, Supplier selection Criteria, Analytical Hierarchy Process, Supplier Evaluation purchasing supply management
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Keywords
Supplier selection;supplier selection criteria; analytical hierarchy process; supplier evaluation; purchasing; supply chain management