The Selection of Steel Product Suppliers Using Analytic Hierarchy Process: A Case Study of Steel Company
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Abstract
The objective of this research is to study the decision criteria regarding the selection of steel product suppliers with Analytic Hierarchy Process (AHP). The criteria used in the study are 5 criteria including price, payment terms, delivery time, service and quality. Then a developed questionnaire was used for data collection. Prior to use, the questionnaire had been checked for quality by determining the objective consistency index. Six experts were involved in the decision-making process to purchase steel products. The results show that the most important aspect for selection was the product quality, accounting for 48.73%, followed by the delivery time, accounting for 18.86%. The least important criterion for judging was service, with the important weight of 7.72%. With regard to decision making in the selection of the most suitable supplier of steel products, Supplier A was found to obtain the most important criteria weight, accounting for 43.63%, followed by Supplier C and B, whose important weights represent 36.07%, and 20.30% respectively.
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References
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