Outsourcing evaluation system based on AHP/ANP approach for LED industry

Abstract Besting coordinate buyer and supplier efforts to improve productivity and competitive advantage in a supply chain is an important issue. Many studies have proposed models, principles, and criteria to evaluate and select the supplier. This study proposes a measurement model for generating performance indicators and evaluating supplier performance in order to help managers to realize the advantages and disadvantages of suppliers. The analytical hierarchy process (AHP) and the analytical network process (ANP) are utilized to determine the weight of each criterion when generating the performance model. Finally, this study uses a data sample of an light emitting diode (LED) manufacturer in Taiwan and company’s three main suppliers to test the evaluation model.