AHP Approach for Supplier Evaluation and Selection in a Pharmaceutical Manufacturing Firm in Ghana

David Asamoah, Jonathan Annan, Samuel Nyarko

Abstract


In today’s highly competitive environment, improper evaluation and selection of the right suppliers can hinder an
organizations supply chain performance. The aim of this study is to present a suitable methodology for the
evaluation and selection of suppliers in a pharmaceutical manufacturing firm in Ghana. Specifically, the study
sought to use the Analytic Hierarchy Process methodology to select the most appropriate raw material suppliers
of the artemether-lumefantrine anti-malarial drug for the case study organization. A review of literature identified
quality, cost, reliability, regulatory compliance, risk, financial position and supplier profile as the most important
criteria for supplier selection. The study however used the three criteria of quality, price and reliability/capacity
for selecting the best suppliers. The results suggest that the AHP makes it easier to evaluate, rank and select
efficient suppliers for manufacturing firms in a timely and reliable manner. Based on the research findings, the
quality selection criterion is most favoured, followed by reliability/capacity, and price. Regarding the selection of
the suppliers, the research recommended S & D Chemicals as the best supplier of Active Pharmaceutical
Ingredients (APIs) and Hellmuth Carroux as the best supplier of Excipients for the case study firm.


Full Text: PDF DOI: 10.5539/ijbm.v7n10p49

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International Journal of Business and Management   ISSN 1833-3850 (Print)   ISSN 1833-8119 (Online)

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