IMPROVING PERFORMANCE OF THE BANANA AGROINDUSTRY SUPPLY CHAIN USING MCDM (MULTI CRITERIA DECISION MAKING)

Abstract

The problems faced by the banana agro-industry include the procurement process of raw materials from banana suppliers, which has not been able to meet the industry's needs. The selection process of banana suppliers has not been a factor considered by the industry in its strategic planning. The technology used should be able to produce quality processed banana products, but in reality, production is still below the available normal capacity. The distribution of processed banana products to consumers has not been well identified, and market access is still limited, resulting in stagnant industry development. The aim of this research is to identify the problems related to the performance of the banana agro-industry supply chain, measure the performance of the banana agro-industry supply chain, and provide and evaluate solutions that can be used to improve the performance of the banana agro-industry supply chain. The method used in this research is to measure the performance of the supply chain using weighting with the multiple criteria decision-making (MCDM) method, which consists of the Analytical Hierarchy Process (AHP), determining alternative solutions using the VIKOR (Vise Kriterijumska Optimizacija I Kompromisno Resenje) method. The results show that the identification of problems in the banana agro-industry supply chain consists of 5 main criteria and 20 sub-criteria, as well as 7 proposed solutions. The measurement of the supply chain performance resulted in a score of 32.032 (poor), indicating that the performance of the banana agro-industry supply chain is still low. The alternative solution provided to improve the performance of the banana agro-industry supply chain is to establish collaboration and partnerships among supply chain stakeholders.