IMPROVING SUPPLIER SELECTION PROCESS BY USING FUZZY-AHP AND ELECTRE METHOD IN COMPANY XYZ

Abstract

The important role of purchasing got higher in the last quarter century since company may not be able to produce high quality products with low production cost without support from proper supplier. This research analyzed the supplier selection process in XYZ Company. XYZ adopt the JIT system. In order to make the JIT run smoothly, the supplier performance to deliver the product based on the schedule provided and provide a high-quality product is very important. The main aim of this research is to select the best supplier based on Fuzzy-AHP and ELECTRE method. Fuzzy AHP method is used to determine the weight of criteria and sub-criteria in order to reduce the uncertainty and vagueness information. While, the ELECTRE method is used to provides a ranking of supplier alternatives. Both of the method is calculated and analyzed to reduce the subjective decision and increase the accuracy of the selected supplier. In this research, there will be three parts for each commodity that will become the sample of this research. After implementing Fuzzy AHP and ELECTRE method, the selected supplier for steel fuel tank part is S1, for side beam impact is S2, wheel disc is S2, seat part is S1, door trim is S2, lamp part is S3, headlining part is S3, the insulator is S1 and hose part is S3.