COMPARING AHP AND ANP AN APPLICATION OF SUPPLIER SELECTION IN INDONESIA CEMENT INDUSTRY

Abstract

In this era of business and technology, management of an entity or company should perform their best of ability to maintain the company in competition. In order to survive, management should possessed a tool to assist them in making decision. This research is perform the ability of AHP (Analytical Hierarchy Process) and ANP (Analytical Network process) as a method in helping management in decision making process. Due to the condition of Indonesia under authority of President Joko Widodo which focusing in revitalization of Indonesia’s infrastructure, several construction companies are having problems in determining their supplier materials. Because of cement become one of importance ingredients in construction works, by performing AHP and ANP as decision making tools it will help construction companies to select and filter their cement suppliers. AHP and ANP are two different methods which are produced by same person (Thomas L. Saaty). By performing these two methods it can resulted in the different and similar selection or outcome. Many factors and other circumstance or number criterions inserted will become important key that AHP and ANP become reliable tool to perform as supplier selection method. Therefore, to find out theirs availability to perform such selection in cement supplier, researcher will compare AHP and ANP methods as decision making tools.