SUPPLIER SELECTION METHOD USING ANALYTICAL HIERARCHY PROCESS (AHP): A CASE STUDY ON A JIT AUTOMOTIVE INDUSTRY
| Main Authors: | Johan Oscar Ong; Industrial Engineering Department, President University, Dicky Salim; Industrial Engineering Department, President University |
|---|---|
| Format: | Article application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Prodi Teknik Industri FT Untar
, 2014
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| Online Access: |
http://journal.tarumanagara.ac.id/index.php/jidtind/article/view/1613 |
Daftar Isi:
- problem, every company has to improve their performance in order to produce the best quality of product. To fulfill the needs of best product, supplier selection process plays an important role in improving company’s performance. In actual conditions, process of supplier selection is not an easy thing to determine, yet it needs a right strategic way to select the potential suppliers. In Just-In-Time (JIT) manufacturer, supplier selection, as long-term investment, is one of the success keys to the JIT implementation. Thus, the objective of this paper is to use a method for supplier selection process in JIT manufacturing industry by applying Analytical Hierarchy Process (AHP). This paper is written based on a study in the largest JIT Automotive Industry in Indonesia. The method begins by applying AHP to settle the criteria considered in a multi criteria and multi person decision making problem. A detailed step-bystep implementation of the method is provided and a case study based on a JIT automotive industry is conducted to prove and ensure the consistency and validity of the applied method. The proposed method AHP, as a method for selecting supplier in a multi person and multi criteria decision, aims to fulfill all the demand in the supplier selection process by considering all 5 criteria and 4 potential suppliers. The 5 criteria are cost, high quality, supplier experience, supplier capability and delay time (delivery).Keywords: Supplier selection, Analytical Hierarchy Process, Automotive Industry, Just-In-Time.