Implementation of supply chain management in supplier performance assessment using Analytical Hierarchy Process (AHP) Objective Matrix (OMAX) and Traffic Light System

Abstract

This study focuses on researching the implementation of supply chain management in supplier performance measurement using Analytical Hierarchy Process (AHP) Objective Matrix (OMAX) and Traffic Light System. The method used consisted of several stages: Identification stage of criteria variable and subcriteria variable, designing hierarchy AHP structure, calculating the weight of each criterion and subcriteria, supplier performance appraisal using OMAX method, calculating the total value of each supplier perfomance and identifying the performance of each supplier Using color indicator from Traffic Light System. Based on the results of the research, it can be seen that 9 out of 10 suppliers that are considered have a good performance while 1 supplier has a performance under the target.