Supplier Selection Criteria Using The Analytical Network Process Method
Supplier Selection Criteria Using The Analytical Network Process Method
Supplier Selection Criteria Using The Analytical Network Process Method
ISSN No:-2456-2165
Abstract:- Decision making is an important thing that Supplier selection is a very critical activity in purchasing
must be done by a company, because companies that do management in the supply chain, because supplier
not carry out decision-making activities appropriately performance plays an important role in cost, quality,
can result in high maintenance costs, causing complaints delivery and services in achieving the objectives of a supply
from customers. There are many decisions made by a chain (Amiri et al. 2018). According to (Blocher et al.
company, one of which is making decisions regarding the 2002), purchasing managers of an industrial company more
selection of suppliers of goods to be used by a company. often use consideration of the lowest price supply factor to
Selection of suppliers is important, where the selection of choose suppliers among suppliers. One other factor that is
the right supplier of goods, not only suppliers who can also dominantly used is the desire to immediately own and
provide quality material, on time, and affordable prices meet the raw material inventory needs. Decision making in
but also must provide quality, optimal service both in supplier selection like this can be at great risk for raw
terms of responsiveness, flexibility, smooth material use when the company will start its production
communication and information .The method used to process activities.
determine supplier alternative solutions based on several
factors can be done using ANP. ANP or Analytic PT. UT is a distributor company engaged in mining
Network Process is a mathematical theory that allows a that prioritizes the quality of its products. According to
decision maker to face factors that are interconnected observations in the service section, besides good quality,
(dependence) and systematic feedback (feedback).This unit work performance is also an important thing to get a
research was conducted at PT. UT. This study begins quality unit. Therefore, PT. UT has a cylinder component
with a literature study first, and then proceed with supplier that can supply components to mining production
giving a questionnaire to the company, where the results units managed by PT. UT service. Some of the products in
of the questionnaire are used as a reference factor of this the UT Company are dump trucks, excavators, and Scania.
study. After distributing the questionnaire, it can be seen In the service process several parts of the company bring in
that there are several criteria, namely price, delivery, 70% of components from suppliers. That is the cylinder and
quality, flexibility, responsiveness, service, guarantee engine. In fact, it often experiences delay in cylinder
and performance history and obtained sub-criteria component supply, PT. UT has sent a plan for changing
namely giving discounts, bid prices, payment grace, parts to suppliers 3 months before the change is made. So
component strength and others . Supplier cylinder itself that PT. UT has a loss on unit service costs which is caused
has 3 choices of suppliers, namely PT. DU, PT. HT and by the low lifetime of the cylinder component. In addition to
PT. TR. After doing calculations using the ANP method the surcharge costs incurred to rebuild the used components,
with the help of Super Decisions software and manual the prices offered are careless and do not follow the price of
calculations, the results of the selected supplier are the current agreement. From the side seal side, the supplier
obtained from the supplier of PT. TR with manual uses a part that is not genuine from Komatsu. cost loss
calculation priority value 0.4561 and super decision experienced by PT. UT can be shown by the table below:
software 0.43612.
I. INTRODUCTION
Background
In the competitive era, the selection of effective
suppliers plays an important role in the success of an
industry. Choosing the right supplier helps an industry to
control costs and improve the competitive side of the
industry. In addition to the decisions taken are logical,
decisions must also be based on certain theories. We often
encounter supplier selection problems, but often we are
confused to choose the best object, if all the demands of the
criteria appear to be equally important. Even from several
objects have the opposite criteria. For example for the best
price criteria is object A, but for the best quality criteria is
object B and for the best function criteria is object C. Fig 1:- Maintenance Cost Graph
Score 1 Indicates two choices have the same or no component) of the comparison component (column
difference of interest and score 9 shows a very large component). If a component has a weak level of influence,
dominance of a component being considered (line the range of scores ranges from 1 to 1/9 (one ninth), where 1
C A1 A2 A3 ... An
A1 a11 a12 a13 a1n
A2 a21 a22 a23 a2n
A3 a31 a32 a33 a3n
.... ...
An an1 an2 an3 ... ann In general there are several corresponding eigenvector
Table 3:- Pairwise Comparison Matrix values that meet the above equation. The variable n in the
above equation can be replaced with a vector A, as follows:
The matrix above is a pairwise comparison matrix.
The matrix is generated from a comparison between Aw = 𝜆𝑤
elements of certain criteria (in this case C). Aij value is the Where 𝜆 = (𝜆1, 𝜆2, … , 𝜆𝑛)every𝜆 the one that fulfills the
comparison value of the Ai element to the Aj element which above equation is called the eigen value, while the vector
states the relationship: that satisfies equation 2.30 is called the eigenvector. If the
a. How far is the level of interest of Ai when compared to matrix A is known and wants to be obtained W, then it can
Aj, or be solved through the following equation:
b. How much is Ai's contribution to criterion C compared [𝐴 − 𝑛] 𝑊 = 0
to Aj, or This equation can produce a solution that is not zero
c. How much characteristic C is found in Ai compared to (if and only if) n is an eigenvalue of A and W is the
Aj or
eigenvector. After the eigenvalue matrix A comparison is
d. How far is the dominance of Ai compared to Aj.
obtained. For example :
If the value of aij is known then theoretically the value 𝜆1. 𝐴2, 𝜆𝑛and based on matrix A which is unique,
of aij = l / au 'While the value of aij in situation i = j is that is𝑎𝑖𝑗 = 1. Dengan 1=1.2, ….,n,than :
𝑛
mutak 1. The numerical value imposed for the comparison
above is obtained from the scale of the comparison made by ∑ 𝜆𝑖 = 𝑛
Saaty. 𝑖=1
3. Step 3: Comparison of element weights Here all eigenvalues are zero except for one that is not
The weight sought is expressed in vectors W = [WI, zero, that is maximum eigenvalue, then if the assessment
W2, W3, ..., Wn]. The Wn value states the relative weight of carried out consistently will get the maximum eigenvalue of
An criterion for the entire set of criteria in the sub-system. A which is worth n. to get W, it can be done by substituting
In a perfect (theoretical) assessment situation a relationship the maximum eigenvalue price in the equation:
is obtained: AW = 𝜆𝑚𝑎𝑥 𝑊
𝑎𝑖𝑘 = 𝑎𝑖𝑗 . 𝑎𝑗𝑘 for all i, j, k Then the equation can be changed to:
A- 𝜆𝑚𝑎𝑥 1 𝑊 = 0
The matrix obtained is a consistent matrix. Thus the
To get a zero price, what you have to do is :
comparison value is obtained from the participant based on
the table, ie aij can be expressed in vector W as: A- 𝜆𝑚𝑎𝑥 𝐼 = 0
𝑎𝑖𝑗 = 𝑤𝑖⁄𝑤𝑗 . 𝑖𝑗 = 1,2,3, … , 𝑛
Based on the equation, the price of λmax can be obtained by
From the above equation can be made the following entering the equation λmax and adding the equation
equation: ∑𝑛𝑖=1 𝑊 1 2 = 1, then we will get the weight of
𝑎𝑖𝑗 . 𝑤𝑖⁄𝑤𝑗 = 𝑙, 𝑖 = 1,2,3, … . 𝑛 each element of the Wi operation, with i=1, 2, …,
𝑛
n) which is an eigenvector that corresponds to the
∑ 𝑎𝑖𝑗 . 𝑤𝑖⁄𝑤𝑗 = 𝑙, 𝑖 = 1,2,3, … . 𝑛 maximum eigenvalue.
𝑗=1
𝑛
4. Step 4: Calculation of the consistency ratio level of
∑ 𝑎𝑖𝑗 . 𝑤𝑗 = 𝑛𝑤𝑖 𝑖 = 1,2,3, … . 𝑛 inconsistency
𝑗=1
Number of Priority
A B C Priority to
Rows Results
PT TR 1 1 1 5/8 53830158 0.37843 2
PT HT 1 1 2 57359905 0.40324 1
PT DU 3/5 1/2 1 31057635 0.21833 3
142247698 1
Table 9:- Alternative weighting of cost criteria (C)