SELECTION OF THE BEST VENDOR IN PROCUREMENT DURING DIRECT SELECTION PROCESS OF CASING 8-5/8 INCHES FOR GEOTHERMAL POWER PLANT USING PROMETHEE METHOD IN PT. X

Abstract

PROMETHEE is multi-criteria decision-analysis method commonly used by decision makers in order to decide the best alternative which suits all criterions decided. One of the problems that can be solved using PROMETHEE method is choosing the best vendor in procurement process. It usually uses subjectivity of the user who needs certain goods to be procured. However, the decision regarding the winner cannot be accepted by some vendors due to suspicion and distrust. This problem is mainly faced in all kinds of company, especially petroleum companies or KKKS (Kontraktor Kontrak Kerja Sama) whose procurement process in SCM (Supply Chain Management), are regulated strictly under SKK MIGAS (Satuan Kerja Khusus Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi) and the law of PTK MIGAS 007-Revision 03, 2015 (Pedoman Tata Kerja Minyak dan Gas). This thesis takes sample of problem from PT. X to show that PROMETHEE method can be used to choose the best vendor objectively. The conclusion of research is the PROMETHEE method can be used to reduce the procurement time and make the choosing process objective. The final result of this research is, based on the analysis, the winner of the procurement, which is vendor TD amongst all other vendors.