Abstract: The many feasible alternatives and conflicting
objectives make equipment selection in materials handling a
complicated task. This paper presents utilizing Monte Carlo (MC)
simulation combined with the Analytic Hierarchy Process (AHP) to
evaluate and select the most appropriate Material Handling
Equipment (MHE). The proposed hybrid model was built on the base
of material handling equation to identify main and sub criteria critical
to MHE selection. The criteria illustrate the properties of the material
to be moved, characteristics of the move, and the means by which the
materials will be moved. The use of MC simulation beside the AHP
is very powerful where it allows the decision maker to represent
his/her possible preference judgments as random variables. This will
reduce the uncertainty of single point judgment at conventional AHP,
and provide more confidence in the decision problem results. A small
business pharmaceutical company is used as an example to illustrate
the development and application of the proposed model.