Determination of Priority Supply Chain Distribution Using DEMATEL Method in Instant Noodle Company

Abstract

The company has a supply chain aims to improve company performance. The supply chain has a distribution center matches the company goals. Companies produce instant noodles have many branches spread in various regions. In order to achieve this goal, the company must determine the priority of the distribution center in the supply chain and analyze the relationship between each factor affects the distribution center to increase the flow of materials and information and the productivity of the company increase. Determination of company supply chain distribution priorities is done by using the DEMATEL method in knowing the criteria influences the selection of supply chain distribution centers. The criteria used are the four Balance Scorecard criteria, namely Financial, Internal, Customer and Learning & Growth. Then distributing priorities are obtained and the relationship of influence between criteria and distribution center. Based on the analysis of the distribution center in the company (Jambi, Medan, Aceh, Riau and Padang), it is obtained that the weighting value for prioritizing the distribution in sequence is 1,0035; 1,5649; 1,3789; 1,2605 and 1,2688. Then it is find out the level of importance sequentially, namely Medan, Aceh, Padang, Riau and Jambi.