SUPPLIER SELECTION OF ANIMAL FEED MANUFACTURER BY APPLYING ANALYTIC HIERARCHY PROCESS
Keywords:
Analytical Hierarchy Process, Supplier, Supplier SelectionAbstract
The purposes of this research are to develop criteria for supplier selection and to prioritize the importance of criteria for supplier selection of animal feed factories by applying the Analytical Hierarchy Process (AHP) technique. The supplier selection was based on eight main criteria: quality, price, on-time and delivery performance, credibility, payment terms and assurance, after-sale service, innovation and technology capability, and environmental management systems. The results revealed that the criteria with the highest to least priority was the quality dimension with the weight value of 0.183, followed by the dimension of price with the weight value of 0.169, the dimension of on-time and delivery performance with the weight value of 0.143, the dimension of credibility with the weight value of 0.126. Then, the weight value of payment terms and assurance dimension was 0.118, the dimension of after-sale service was 0.099, the dimension of innovativeness and technology capability was 0.089, and the last priority was the environmental management system with the weight value of 0.072. The results of the proposed approach show that the application of the Analytical Hierarchy Process helps to make decisions in selecting suppliers for animal feed manufacturers appropriately.
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