An Integrated Analytical Hierarchy Process and Monte Carlo Method Approach for Supplier Selection in Construction's Supply Chain

Construction is typically more dynamic than any other business sector because of construction have a high uncertainty which can be affected by weathers, political-economy conditions, and unpredictable situation along the process. Supplier selection is an important key in construction, delay in supply materials and tools can affect the project's duration. There are many studies for supplier selection to solve the problem of supplier selection in construction. Recent studies using Decision-Making Method with a deterministic mathematical model. The aim of this study is to build a model for supplier selection with a probabilistic mathematical model to solve the uncertain problem in construction. This paper proposes an integrated MCDM methodology. Analytic Hierarchy Process (AHP) is used to determine the weight of the criteria for supplier selection, which needs an opinion from the experts. And Monte Carlo Method is used as a simulation for selected uncertain-criteria in construction using a case study from a construction company. The contribution of this research is to propose a probabilistic model MCDM for supplier selection in construction to conquer the uncertainty.