Abstract
Dairy supply chain is one of food supply chain that has its own uncertainty both in upstream and downstream process due to the durability of product. Dairy market has good demand trend, because the supply is still below the consumption level. Indonesia use imported dairy product rather than use the domestic ones, because the supply of domestic dairy still below the demand. So, there are opportunities for dairy company to compete in this industry and reach competitive advantage by solving the upstream problems. Selecting supplier is one of upstream supply chain area which affected the quality of dairy product and mitigate supply chain risk management from the beginning. This research aim to develop a framework for supplier selection. According to AHP method this research will be determine main criteria by interview, pair wise comparison on developing the AHP, determine sub criteria based on main criteria, and rank the supplier. The result is forming a framework of supplier selection based on company requirements. Also, the main criteria for supplier selection are quality, quantity, delivery, warranty, and pricing with sub main criteria which already deployed. Maltodextrin A will be choose rather than Maltodextrin B. The sensivity analysis also shown that all of criteria were robust.
Highlights
DAIRY supply chain is a kind of food supply chain
According to Aung et al (2014), dairy supply chain is a process with six main activities such as the production of raw milk into dairy product, transportation of the product, processing, packaging the product that match with the characteristic of product, storage and consumption by consumer [1]
Researcher will combine those research into designing supplier selection with Analytical Hierarchy Process (AHP) that fulfilling company requirement
Summary
DAIRY supply chain is a kind of food supply chain. Food supply chain has its own volatility of products because of the natural attributes which has impact on customer’s health. There are several problems which affect the uncertainty of food supply chain. Product safety and health becoming consumer awareness [6] For this industry, if a company can survive and dealing with these situations, it will give them competitive advantage. Chen and Guo (2013), conducted a research the analysis of supplier selection benefits are mitigate supply chain risk, increasing competitive advantage, and forming strategies for company [3]. Indolakto – Purowsari based on PPIC manager and Purchasing supervisor is using another form of supplier selection. This company using level of approval as standard of supplier selection. This standard is used based on main company of Indolakto.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
