Evaluating Suppliers in the Olive Oil Sector Using AHP

This work proposes a multi-criteria decision making approach to help assessing and selecting suppliers in the olive oil sector. Olive oil is a protected agricultural product, by region and origin certificate. Therefore to select a supplier, it is of utter importance to inspect and test (taste, colour, smell, density, among others) the olive oil in addition to the supplying company. The identification of possible suppliers was done in two stages: firstly, the region of origin from which to choose possible suppliers was identified and then potential suppliers were evaluated on a set of characteristics for which minimum threshold values were set. From this study, which is not part of the research reported here, we were able to identify the suppliers of interest. Due to the several characteristics and characteristic dimensions used to choose a supplier we resort to the Analytic Hierarchy Process to rank them, this way allowing for a better choice. The rank obtained is robust as the top ranked supplier remains the same for any reasonable change in the criteria weighs and in the evaluation of the suppliers on each criterion. The involved company found the results of value, as well as the lessons learned by addressing the supplier evaluation problem using a more systematic approach.