Analysis Concept Design of Corn Raw Materials Suppliers in the Animal Feed Industry using Analytical Hierarchy Process (AHP) Method

Abstract

Procurement of raw materials is a major activity in the manufacturing industry. Therefore, the role of supplier is very important in the supply flow of an industry. Supply Chain Management in the industry must be managed efficiently. The animal feed industry located in Medan City has constraints in determining suppliers in the supply of timely and quality raw materials, it greatly affects industrial activities so the industry can’t provide the consumers’ needs properly. Therefore, this research was conducted to determine the suppliers that fit the company’s needs. The analysis used Analytical Hierarchy Process (AHP) method by taking data randomly from 20 suppliers in Animal Feed Industry. The AHP method analyzes based on the main criteria then obtained the first priority criterion is Delivery (0.4385), the second priority is Quality (0.2775), the third priority is Cost (0.0890), the fourth priority is Service (0,0854), the fifth priority is Flexibility (0.0582) and the last is Performance (0.0513). As for the selection of suppliers that have been adjusted to the priority level of the existing criteria is supplier B (0.5026), followed by supplier A (0.3129) and the last is supplier C (0.1845). So, it can be concluded that Supplier B is the best supplier.