Sea Cucumber Suppliers Selection Using Multi – Objective Optimization on The Basis of Ratio Analysis Methods

Abstract

This study aims to implement decision making methodology to select raw material suppliers for sea cucumbers in fish cracker Micro, Small and Medium Enterprises (MSMEs) in Bangkalan Districts, Indonesia. Raw materials sourcing is one of the most critical functions in MSMEs because of its significant effect in reducing production costs and increasing overall profits. The sea cucumbers suppliers’ selection process is analysed in two phases. The first phase is the development of a hierarchy of problems in selecting fish cracker MSMEs suppliers to determine the selection criteria and sub-criteria. The Analytical Hierarchy Process (AHP) was used to determine pairwise comparisons, consistent weights and priority decisions of the alternative raw materials suppliers. In the second phase, Multi – Objective Optimization on The Basis of Ratio Analysis (MOORA) is conducted using the AHP results as input to optimize two or more conflicting objectives subject to some constraints. Then, the AHP method and the MOORA method were used to obtain the MSME’s sea cucumber suppliers ranking and evaluate the best possible suppliers.