Analytic network process in supplier selection Step 1: The first step of the algorithm is the analysis of the supplier

selection problem. The main goal of the supplier selection problem is selecting the best supplier that meets the requirements or criteria are of the company. Step 2: For the proposed supplier selection model, overall 45 criteria is determined under the below mentioned three main criteria clusters: Business structure of the supplier. Manufacturing capability of the supplier. Quality system of the supplier. Step 3:In this step alternatives are determined. Selecting the alternatives from the successful ones in their field of activity by using the preliminary elimination will increase the quality of the decision. Step 4: In this step the interactions between and within clusters and elements are determined. The supplier selection network models control hierarchy according to the determined criterias is given in

Step 5: In this step supermatrix is constructed according to the network built in step 4. The supermatrix structure is shown in Equality. Step 6: Generally in this step the supermatrix will be an unweighted one. Because in each column it consists of several eigenvectors which of them sums to one (in a column of a stochastic) and hence the entire column of the matrix may sum to an integer greater than one. The supermatrix needs to be stochastic to derive meaningful limiting priorities. So for this reason to get the weighted supermatrix, firstly the influence of the clusters on each cluster with respect to the control criterion is determined. This yields an eigenvector of influence of the clusters on each cluster. Then the unweighted supermatrix is multiplied by the priority weights from the clusters, which yields the weighted supermatrix. Step 7: Finally the super matrix will be steady state by multiplying the weighted super matrix by itself until the super matrixs row values converge to the same value for each column of the matrix. According to this point the supplier, which have the highest priority will be chosen.

The criterias determined supplier selection by using ANP Criteria code 1. Criteria name Business structure of the supplier

Criteria code A. A1 A2. A3. A4. A5. B. B1. B2. B3. C. C1. C2 C3. 2. D. D1. D2. E. E1. E2. E3. E4. F. F1. F2. F3. F4. 3. G. H. H1. H2. H3. H4. I.

Criteria name General information of the supplier Facility location The number of working years in this sector The references The service capability Communication capability Organization profile of the supplier Organization structure The number of personnel Education status of the personnel Financial status of the supplier The last term profit Exporting status Appropriateness of the materials price to the market price Manufacturing capability of the supplier Equipment status of the supplier Machine capacity and capability Manufacturing technology Manufacturing capability of the supplier Facilities manufacturing capacity Technical capability Manufacturing planning capability Handling and packaging capability Material delivering capability of the supplier Appropriateness of the quantity Appropriateness of the delivery date Appropriateness of the packaging standards The period of procuring materials Quality system of the supplier Quality system certificate of the supplier Quality system documentation of the supplier Quality manual Documentation control Archive of quality records Usage of worth instructions Quality system application of the supplier

Criteria code I1. I2. I3. I4. I5. I6. I7. I8. Supplier code J1 J2 JN

Criteria name Process control capability Product identification Receiving Inspection Calibration control Non-conforming material control system Corrective and preventive action system Audit mechanism Training Supplier name First alternative supplier Second alternative supplier Nth alternative supplier