Supplier Selection Analysis Using Analytical Hierarchy Process (AHP) –Case Study: Confectionery Industry

Abstract

The selection of suppliers conducted by the purchasing department is very crucial for a company. Improper selection of suppliers could cause damage to the company in terms of operational and financial. On the other way around, proper selection of suppliers could optimize production cost and advance product quality as well as the company's performance. The case study conducted at PT. XYZ, a manufacturing company that produces various types of confectionaries. In selecting suppliers, companies still use a traditional form filled with qualitative answers. This research aims to help the company deciding the best suppliers using quantitative criteria. This research uses the Analytical Hierarchy Process and Software Expert Choice 11 in processing the data. This research shows that the delivery and quality criteria are the most significant aspect of selecting suppliers (weight value 0.333) compared to the other two criteria: price and service.