Supplier Evaluation in Book Retail Industry using Analytical Hierarchy Process (AHP)

Abstract

Since the introduction of E-commerce in book retail in India, it has become important for the vendors and store owners in book retail industry to source their products from the correct suppliers, in order to compete with E-commerce giants. This paper focuses on proposing a structured model for evaluating suppliers in Book retail industry in India, using Analytic Hierarchy Process (AHP). This proposed model is evolved using evidence from an observed study in Tier 2 city of India. The model takes into account the various factors which are considered by the vendors in Book Retail Industry while placing their orders of books with different suppliers. The criteria considered for this model includes, Discount Offered (Cost), credit terms, return policy, delivery time, Genuineness (Quality) of product. However, Discount Offered and Genuineness of product are two important factors out of all. This proposed model can be used by the vendors to further select the best supplier for sourcing their product.