AHP Example

ABC Company wants to select their suppliers based on three criterion, Cost, Quality and Reputation.
There are three Vendors to choose from: Vendor 1, Vendor 2, and Vendor 3.

Comparison matrices are given. Using AHP, how will you select the vendor?

Cost
Vendor Vendor 1 Vendor 2 Vendor 3
Vendor 1 1 4 3
Vendor 2 1/4 1 1/2
Vendor 3 1/3 2 1

Quality
Vendor Vendor 1 Vendor 2 Vendor 3
Vendor 1 1 1/4 1/6
Vendor 2 4 1 2
Vendor 3 6 1/2 1

Reputation
Vendor Vendor 1 Vendor 2 Vendor 3
Vendor 1 1 4 3
Vendor 2 1/4 1 1/2
Vendor 3 1/3 2 1

Criterion Cost Quality Reputation

Cost 1 2 4
Quality 1/2 1 3
Reputation 1/4 1/3 1