Determining the priority level of suppliers by using AHP and TOPSIS

Abstract

The selection of suppliers by any company is important as a wise effort to get a smooth supply of raw materials to meet its needs from time to time. The selection and determination of sugar suppliers is important for PT MM as a syrup processing company that sometimes suffers from a shortage of sugar as raw material. This raw material is sometimes not available in sufficient quantities and causes disruption of production activities and failure to achieve production targets. While the company does not want to keep a stock of raw materials to meet the needs for a long time. This company prefers regular supply from time to time. Therefore the company must be selective in choosing the best actual suppliers that will become the company’s partners in the future. Selection is done by using five criteria, namely price, quality, delivery, service and warranty. The five criteria are then outlined in 14 sub-criteria. The company should select some of the right suppliers by trying to use available selection methods such as AHP methods and TOPSIS. AHP method can be implemented to determine the order of criteria used in supplier assessment, and TOPSIS to rank suppliers by using weighted criteria.