Application of AHP and TOPSIS method:a case study in the Indonesian leather industry

Chaeron, Mochammad and Putro, Gunawan Madyono and Soepardi, Apriani and Wibowo, Muhammad C (2023) Application of AHP and TOPSIS method:a case study in the Indonesian leather industry. In: International Conference on Industrial Engineering and Operations Management (IEOM), 7-9 March 2023, Manila, Philippines. (In Press)

Text (IEOM 2023 Manila) 2023-IEOM-Manila-upload eprints.pdf - Accepted Version Download (8MB)

Abstract

The UDFM is an enterprise located in Yogyakarta that produces leather products. Consumers nowadays demand of
quality products with the shortest production time possible. However, quality products begin from quality raw
materials that meet company’s predetermined specifications. Unfortunately, raw materials often fail to fulfil the
company’s expectation. This discrepancy indicates that the suppliers’ role is less optimized. This study was performed
to enhance the selection of suppliers in the Indonesian leather firm2 based on certain criteria and sub-criteria
predetermined by the company. The criteria included quality, price, delivery, service, company profile, and risk. The
Analytical Hierarchy Process (AHP) and Technique for Order Preference By Similarity To Ideal Solution (TOPSIS)
were employed in the selection process. After identification and assessment process completed, a proposal was
submitted to select the most appropriate supplier. The results of this study showed the performance values of the four
suppliers, namely supplier A of 6.25%; supplier B of 31.25%; supplier C of 43.75%; and supplier D of 18.75%.
Supplier C obtained the highest performance value, which indicated that supplier C made the most appropriate main
supplier for company.
Keywords
The UDFM is an enterprise located in Yogyakarta that produces leather products. Consumers nowadays demand of
quality products with the shortest production time possible. However, quality products begin from quality raw
materials that meet company’s predetermined specifications. Unfortunately, raw materials often fail to fulfil the
company’s expectation. This discrepancy indicates that the suppliers’ role is less optimized. This study was performed
to enhance the selection of suppliers in the Indonesian leather firm2 based on certain criteria and sub-criteria
predetermined by the company. The criteria included quality, price, delivery, service, company profile, and risk. The
Analytical Hierarchy Process (AHP) and Technique for Order Preference By Similarity To Ideal Solution (TOPSIS)
were employed in the selection process. After identification and assessment process completed, a proposal was
submitted to select the most appropriate supplier. The results of this study showed the performance values of the four
suppliers, namely supplier A of 6.25%; supplier B of 31.25%; supplier C of 43.75%; and supplier D of 18.75%.
Supplier C obtained the highest performance value, which indicated that supplier C made the most appropriate main
supplier for company.
Keywords
AHP, multi criteria decision-making, leather, supplier selection, TOPSIS

Item Type:	Conference or Workshop Item (Paper)
Uncontrolled Keywords:	The UDFM is an enterprise located in Yogyakarta that produces leather products. Consumers nowadays demand of quality products with the shortest production time possible. However, quality products begin from quality raw materials that meet company’s predetermined specifications. Unfortunately, raw materials often fail to fulfil the company’s expectation. This discrepancy indicates that the suppliers’ role is less optimized. This study was performed to enhance the selection of suppliers in the Indonesian leather firm2 based on certain criteria and sub-criteria predetermined by the company. The criteria included quality, price, delivery, service, company profile, and risk. The Analytical Hierarchy Process (AHP) and Technique for Order Preference By Similarity To Ideal Solution (TOPSIS) were employed in the selection process. After identification and assessment process completed, a proposal was submitted to select the most appropriate supplier. The results of this study showed the performance values of the four suppliers, namely supplier A of 6.25%; supplier B of 31.25%; supplier C of 43.75%; and supplier D of 18.75%. Supplier C obtained the highest performance value, which indicated that supplier C made the most appropriate main supplier for company. Keywords AHP, multi criteria decision-making, leather, supplier selection, TOPSIS
Subjects:	T Technology > TA Engineering (General). Civil engineering (General)
Divisions:	Faculty of Engineering, Science and Mathematics > School of Engineering Sciences
Depositing User:	STP,MT,Dr APRIANI SOEPARDI
Date Deposited:	29 May 2023 03:43
Last Modified:	21 May 2024 04:55
URI:	http://eprints.upnyk.ac.id/id/eprint/35682

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