Supplier Selection by Using Analytical Hierarchy Process (AHP) and Techniques for Order Preference Methods with Similarities to Ideal Solutions (TOPSIS)

Abstract

One company that is engaged in drying coffee beans has problems, the problem is suppliers have not been able to meet the criteria set by the company. Within the last six months, there were coffee bean sacks that the company rejected because of the mismatch of the quality of the coffee beans obtained from suppliers with the standards set by the company so that the selection of suppliers that could meet the criteria of the company was needed. The criteria used by the company are quality, price, quantity, delivery time and response to claims. This study aims to determine the best suppliers based on criteria weights and to rank each alternative supplier. The method used by researchers for this problem is the method of Analytical Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). This method is used to determine supplier priorities. Determination of criteria and subcriteria is built based on expert answers using a questionnaire. Assessment of the importance of criteria and alternative weights based on the AHP questionnaire. The results obtained using this method indicate that the supplier who gets the first and deserves priority is PT ABC with the highest preference value of 0.8639.