APPLICATION OF THE DYNAMIC PROGRAMMING MODEL WEIGHTED WITH ANALYTIC HIERARCHY PROCESS IN PURCHASING PROCESS

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Decision making is a significant and complex process for businesses. Increase in the number of alternatives and criteria, complicates the decision maker’s role in this process who will make a choice among the conflicting criteria. In this study it is aimed to determine the purchasing and inventory plan in accordance with multiple criteria. This plan is derived by the integration of Analytic Hierarchy Process (AHP), one of the multi criteria decision making methods used for the solution of problems involving quantitative and qualitative multiple criteria, with the Dynamic Programming (DP) model. By using the weights calculated through AHP the optimal result can be obtained with DP for the dynamic inventory and purchasing problem.

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Multi Criteria Decision Making , Analytic Hierarchy Process , Dynamic Programming , Inventory Planning , Purchasing Process

Afyon Kocatepe University Journal Of Economics an‎d Administrative Sciences

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Afyon Kocatepe University Journal Of Economics an‎d Administrative Sciences