IMPLEMENTATION OF EVALUATION MODEL AND SUPPLIER PERFORMANCE SCORECARD IN MULTI CRITERIA DECISION MAKING PROBLEM

Abstract

Supplier selection is one of Multi Criteria Decision Making (MCDM) and Multi Person Decision Making (MPDM) problems. In order to determine the best supplier in supplier selection, the main factors involved are subjective and objective decision. The subjective decision is obtained from decision makers’ preference. Meanwhile, the objective decision is gathered from actual data recorded. Thus, the integration between subjective and objective decision is needed in determining the best supplier. An evaluation model is designed in order to select the best supplier by using Analytical Hierarchy Process (AHP), Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS) and Ordered Weighted Averaging (OWA) method. Besides it, the supplier performance scorecard is developed to represents company data about supplier performance. Balanced Scorecard approach is utilized in scorecard analysis. Both evaluation model and supplier performance scorecard are applied to a case study in PT. ABCD. The research concludes that AO as the best supplier in sourcing process of cover room partition case in PT. ABCD. Based on evaluation model result, AO is positioned as the first ranking. According to performance scorecard result, AO can reach the highest point among candidates. Therefore, AO can be considered as integration result decision.