IMPROVING THE SUPPLIER SELECTION PROCESS AT GHI COMPANY BY USING ANALYTIC HIERARCHY PROCESS METHOD

Abstract

In the industrial area, there some factors that can affect the production process. One of internal factor to support the production process is purchasing. Supplier selection is one of important element in the purchasing process. A good relationship between the company and the supplier is needed. The effective supplier selection will help the company to achieve the demand of the company productions. GHI Company is one of business units under HSP Group, engaged in a modern pharmacy in the form of health and beauty store. The company seeks a strong co-operation with the principal suppliers. The company still doesn’t have policy in terms of determining each supplier according to its performances, and the multiple suppliers appear in the company. Analytical Hierarchy Process will be used as a method to solve the problem that appears in the purchasing process at GHI Company. In the result of this research, there are six important criteria with twelve sub-criteria to be considered as the assessment of choosing the best supplier. In this research there are three worst products will be analyzed. A three alternative supplier can be considered as the supplier for product hansaplast, accu check soft clinx and accu check family pack packet. They are:PT. DEF (0.315), PT. IJK (0.202) and PT. ABC (0.183) for hansaplast, for product accu check soft clinx are PT. PQR (0.340), PT. PUV (0.239) and PT. PST (0.235) and for product accu check family packet PT. PQR (0.301), PT. XYZ (0.246) and PT. RST (0.173).