scholarly journals APPLICATION OF AHP FOR SUPPLIER SELECTION IN CONSTRUCTION COMPANIES

2020 ◽  
Vol 1 (6) ◽  
pp. 921-933
Author(s):  
Rosalendro Eddy Nugroho ◽  
Maria Sherly Iskandar

The procurement process is an important process in supply chain management as it is the spearhead of the entire process. In carrying out the procurement process, there are often problems with the supplier selection activities. This is because the supplier selection process spends a lot of time and resources collecting data and conducting careful analysis that will affect the entire decision alternative. In making decisions relating to the many criteria and the number of alternative suppliers, it requires an effective and uncomplex assessment technique, but it provides accurate results. A mapping and determination of supplier selection criteria is required as a basis for valuation to obtain a qualified supplier. This study focused on PT. XYZ is a construction company in South Tangerang. Analytical Hierarchy Process (AHP) is used to determine the best supplier, there are 4 variables that are reference in conducting the selection of suppliers, such as: cost, quality, delivery, and service. The result in the selection of the supplier company is cost with a weight of 0.268, quality with a weight of 0.290, delivery with a weighting of 0.248, and the service with a weight of 0.194 where conclusions obtained from the analysis of the selection of the best suppliers and in accordance with the criteria, namely PT. CBL for iron suppliers, PT.SAS for cement suppliers, and PT. Citra BSD for suppliers of natural materials

Author(s):  
Daniel Kartawiguna ◽  
Yohanes Adityo Prayudo ◽  
Maureen Sutiono ◽  
Hendry Roesly

The purpose of this study is to develop a decision support system to support supplier selection process in PT Guna Elektro and also to develop a system that could provide alternatives to the selection of the best suppliers. The methodologies used in this study are analysis, design, and literature study. Analysis will be done by conducting a survey about the current company system, conducting interviews with system users, and then analyzing the survey results. The literature study is conducted by searching reference sources related to the study while the design is conducted by designing a data management subsystem, model, knowledge base, and user interface. The result on the development of the decision support system application can be used to select the most appropriate supplier which are suitable with the criteria required. The developed decision support system helps support the decision making process for supplier selection.


2012 ◽  
Vol 2 (5) ◽  
pp. 177-179
Author(s):  
Bhavik K Daxini ◽  
◽  
Prof. (Dr.) R.B. Bhatt Prof. (Dr.) R.B. Bhatt ◽  
Prof. Jayeshkumar Pitroda

2008 ◽  
Vol 27 (1) ◽  
pp. 49-62
Author(s):  
Sameer Kumar ◽  
John Bisson

With a growing global economy and competition and increased outsourcing, the supplier selection process has gained more focus and importance within many business enterprises for developing an integrated supply network. Analytic Hierarchy Process (AHP) has been identified as an ideal multi-objective decision support tool to assist firms in completing the supplier selection process as part of strengthening their procurement strategies. This paper involved secondary research methods to gain an understanding of AHP, its various applications, and exploration of how to incorporate non-traditional selection criteria such as environmental criterion into the process. AHP's application for optimal supplier selection to support integrated procurement process is illustrated through an example of a Medical Device Manufacturer (MDM), known for established supplier-customer partnerships and alliances. Major limitation in studying this example included data availability to complete a comprehensive AHP decision management model. However, it was found that AHP is a powerful, structured but flexible method of addressing the multi-criteria supplier selection decision that facilitates building an integrated supply chain.


2015 ◽  
Vol 25 (3) ◽  
pp. 413-423 ◽  
Author(s):  
S.E. Omosigho ◽  
Dickson Omorogbe

Supplier selection is an important component of supply chain management in today?s global competitive environment. Hence, the evaluation and selection of suppliers have received considerable attention in the literature. Many attributes of suppliers, other than cost, are considered in the evaluation and selection process. Therefore, the process of evaluation and selection of suppliers is a multi-criteria decision making process. The methodology adopted to solve the supplier selection problem is intuitionistic fuzzy TOPSIS (Technique for Order Preference by Similarity to the Ideal Solution). Generally, TOPSIS is based on the concept of minimum distance from the positive ideal solution and maximum distance from the negative ideal solution. We examine the deficiencies of using only one metric function in TOPSIS and propose the use of spherical metric function in addition to the commonly used metric functions. For empirical supplier selection problems, more than one metric function should be used.


2021 ◽  
Vol 3 (2) ◽  
pp. 380-386
Author(s):  
Gushelmi Gushelmi ◽  
Dodi Guswandi

Showroom Ragasa Motor Padang is a showroom that sells various types of used cars. The old system of selecting used cars in The Ragasa Motor Padang Showroom is that customers come directly to the address of this Showroom and the selection process is still done by manual means. With the development of internet technology today is increasing rapidly and in order to be accessible to everyone, the AHP can do a comparison of the criteria in pairs on the selection of used cars and can determine the consistency of the comparison data paired with a threshold value of < 0.1. The purpose of this research is to make it easier for customers to choose used cars quickly and accurately, as well as the application of programs used to make it easier for customers to use them. The result of this study is the SPK System that was built to be able to take the decision of the selection of used cars in the Showroom Ragasa Motor Padang with the selection of the 2nd alternative with a value of 2.55 as the best choice.


2019 ◽  
Vol 8 (1) ◽  
pp. 45-54
Author(s):  
M Ilham A Siregar ◽  
Danyl Mallisza ◽  
Wahyuni Yahyan ◽  
Harry Setya Hadi

Private companies, government agencies and educational institutions are still experiencing difficulties in selecting employees / employees who are in accordance with their needs and experts in their respective fields. With the increasing number of workers who have different abilities, recruiting new employees requires selection of prospective employees at Ekasakti University, because if this is done manually, it will make it difficult for the staff to receive and also be prone to mistakes in decision making. The decision making system method (Decisions Support System) can be used to help the selection of new employee recipients with the AHP Method. Selection of new employee admissions by the AHP (Analytical Hierarchy Process) method can help solve the case of selecting employee recruitment. The model of applying dynamic logic applied in the AHP (Analytical Hierarchy Process) has the advantage that the selection process provides very flexible results


2018 ◽  
Vol 73 ◽  
pp. 09021 ◽  
Author(s):  
Pujotomo Darminto ◽  
Rahcman Erpita ◽  
Budi Prasetiyo Utomo Trio

Industry globalization and consumer concern for environmental issues compel the industry to make adjustments to the green industry concept including green procurement activities such as supplier selection. One of the industries in the diesel engine exporting company, PT. Kubota Indonesia, must be able to meet market demands related to Green Industries. one of the Green Industry Concepts that teaches companies to broaden their perspectives on corporate environmental concerns is Green Procurement. This concept emphasizes companies to use suppliers who also have a concern for the environment. When conducting the supplier selection process PT. Kubota Indonesia only emphasizes on the criteria for quality, price and timely delivery. In addition, delays in orders received at the company make this company have to choose suppliers. The results of this study were to determine the criteria and sub-criteria weights used by PT. Kubota Indonesia selects suppliers according to the concept of Green Procurement, ranks and selects suppliers using Fuzzy Analytical Network Process (FANP). The most important criteria are quality criteria and the best supplier recommended is PT. Three Pamindo T


2013 ◽  
Vol 2013 ◽  
pp. 1-22 ◽  
Author(s):  
Nadia Jamil ◽  
Rosli Besar ◽  
H. K. Sim

This paper is designed to present the effectiveness of group multicriteria decision making in automotive manufacturing company focusing on the selection of suppliers in Malaysia. The process of selecting suppliers is one of the most critical and challenging endeavor in any supply chain management. There are five decision making tools being analyzed in this study, namely, analytical hierarchy process (AHP), fuzzy analytical hierarchy process (FAHP), technique for order performance by similarity to ideal solution (TOPSIS), fuzzy technique for order performance by similarity to ideal solution (FTOPSIS), and fuzzy analytical hierarchy process integrated with fuzzy technique for order performance by similarity to ideal solution (FAHPiFTOPSIS). The scores of ranking among the suppliers in each MCDM tools (AHP, FAHP, TOPSIS, FTOPSIS, and FAHPiFTOPSIS) show significantly comparable variation. Scores of the best supplier is then compared to the lowest supplier for all MCDM tools whereby this reflects that the highest percentage goes to TOPSIS with scoring of 79.37%. On the contrary, FAHPiFTOPSIS demonstrated the lowest score variation of 22.42% which indicates that FAHPiFTOPSIS is able to eliminate biasness in supplier selection process.


2014 ◽  
Vol 5 (2) ◽  
pp. 212-226 ◽  
Author(s):  
Aat van den Bos ◽  
Benjamin Kemper ◽  
Vincent de Waal

Purpose – The purpose of this paper is to study the use of the Lean Six Sigma (LSS) methodology in a construction company. Design/methodology/approach – In our study we analyze 62 LSS improvement projects carried out within a Dutch company. In our analysis we focus on both speed, in terms of throughput time (THT), and impact, in terms of project completion, of each project. Findings – From the analysis we conclude that the current THT of a project is about a year and we identify important factors that cause large project's THTs These factors are then translated into recommendations for an efficient execution of LSS improvement projects. Research limitations/implications – The analysis is based on a sample from one company of the Dutch construction industry. The scope should be broadened as more companies adopt quality and process improvement programs, such as LSS. Originality/value – The narrowed scope, only one company and focused mostly on the speed of projects, helped to do an in-depth analysis. Therefore, we are able to present concrete and useful recommendations that relate to practical issues in the execution of improvement projects. These recommendations offer a checklist for construction companies in the project selection process, in situations of starting or improving an LSS program


2010 ◽  
Vol 09 (02) ◽  
pp. 129-144 ◽  
Author(s):  
AVINASH D. SARODE ◽  
V. K. SUNNAPWAR ◽  
P. M. KHODKE

The supply chain is an important element for the development of all industries. It can improve efficiency and effectiveness of product transfer and information sharing between complex hierarchies of all the tiers. Supplier selection is an important step in the supply chain design. In many existing decision models for supplier selection, only quantitative criteria are considered. However, supplier selection is a multi-objective problem containing quantitative as well as qualitative factors. Hence, this paper attempts to demonstrate the application of the Analytic Hierarchy Process (AHP) to overcome the above-mentioned problem. From an extensive analysis of the results, it is evident that selection of an appropriate supplier would result in improving effectiveness of supply chain.


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