Supplier selection in rubber industry using analytic network process (ANP) and technique for order preference methods by similarity to ideal solution

Abstract

The selection of suppliers of raw materials is a requirement of decision-making which is quite important because the right supplier selection can improve the performance and increase the competitiveness of the company. The main factors of concern in determining criteria for supplier companies is a necessary characteristic of rubber raw materials that have the standard SIR (Standard Indonesian Rubber). Based on expert opinions specified several criteria and subkriteria required for the selection of the supplier. Supplier selection problem resolution is done by applying the methods of Analytical Network Process (ANP). Supplier selection criteria using Dickson’s Vendor Selection theory. The scale of the influence between criteria and alternatives based on the criteria relationship becomes the input in ANP to produce criteria weight. ANP analysis produces the criteria that become the best supplier performance requirements are Quality criteria (0.2918), followed by price criteria (0.1857), performance history (0.1267), delivery (0.1225) and claim policy and warranty (0,0954) Sub-criteria resulted in consistency of quality, accuracy of the number of shipments, level of disability, timeliness of delivery, price cuts, guarantee of raw materials, ability to maintain agreements, flexibility of delivery schedules, and quick response in responding to complaints.