Supplier Selection in Service Industry Using Analytical Hierarchy Process

Every production system including the tourism industry which creates services to customer satisfaction is directly part of supply chain must have its contractor and decisions about the appropriate suppliers. For hotels are a major issues of concern since its assumption will deploy an inclusive choice of scientific co-operation extended within a particular era. For as we all know that, every firm hugely depends on a reliable supplier for their products, therefore suppliers play vital role to make any organization reach the peak of cost efficient and profitable. Supplier selection (SS) has a great impact on integration of the Supply Chain Relationship (SCR), and the best supplier will greatly help to enterprises efficiency between supply chain (SC) partners and consequently enhance organizational performance. To the best of our knowledge, there are many studies regarding supplier selection for various industries, most of them are good production systems and only few are related to service industry. However, there is no study for hotel business. In this study we are considering some significant factors to determine which of them is the most important to be accepted when making a selection for the right supplier in hotel business. Via evaluating the weight of each factor using Analytic Hierarchy Process (AHP), through Pair-wise Comparison Matrix’s (PWCMs) of a given criteria and the weight of the numerical scale of judgment are used to represent the relative important among the Multiple-Criteria Decision Makings (MCDMs). For evaluating and selecting the best supplier in hotels was a realistic attempt by implementing a survey questionnaire which was sent to the top managers in various hotels through a well-designed internet web-site which was used to justify the AHP judgment from the decision makers (DM) or experts. For assigning the efficacy and accuracy of the identified criteria and their weights the real life application is applied to a hotel in Cyprus. The landscape and geography of Cyprus gives potential to run a hotel business, and therefore this part of touristic industry has succeed high degree of competitiveness. The facilitated and determined weights of criteria in real life may provide a privilege for hotels to analyze alternative suppliers and make the best decision. The main contribution of this study is that utilize weight of the criteria is used to enhance the efficiency and flexibility of the supply network and selection process for continuous improvement of hotel business.