Supply chain management and a use of an AHP in supplier selection analytical hierarchy process and a application

Today?s companies have focused on core business to survive due to increasing competition and outsourced non-core products and services from external suppliers. This increases the importance of supply chain management concept that provides the supplier integration.By the help of supply chain method companies joined together outsourcing channel?s and their core compentencies and creating value capabilities to gain new competitive advatages.Selecting the supplier is a very difficult task to carry out. During the decision process, when choosing among the alternatives that perform different purposes or among the contrasting options, we may have to find the most appropriate one. Because of this complicated process, we refer to Multicriteria Decision Making Method to decrease the error rate. For determining the best supplier selection assessing all the cases to choose the best approach, the Analytical Hierarchy Process (AHP) is used.Thomas L.Saaty first used AHP on probability plan problems in 1971. Later than AHP has been applied in many field, especially it was used in many applications in 1973-1980.AHP, is a method used for systematic comparison, evaluation and selection of the options via determining the strengths and weaknesses of options.In this study, the best supplier selection is started, and it is aimed on determining the best option and implementing it. At the begining of this study explained supply chain management and concept includes in the second part informed about supplier chain management planning and implementation, in the third parts informed about supplier selection and performace evaluation, in the fourth part is to talked about AHP, selection and implementation and to defined criterias, is to explained the study and the study is to be ended.Key Words: Analytic Hierarchy Process, AHP, Multi Criteria Decision Making Method, MCDMM, Supply Chain Management, Supplier Selection, Performance Evaluation.