Analysis of Supplier Selection of Steel Plate Raw Materials on Railways using Analytical Hierarchy Process (AHP) and Additive Ratio Assessment (ARAS) Methods at PT XYZ

Dira Ernawati -; Tranggono; Yekti Condro Winursito

Authors

Dira Ernawati - UPN Veteran Jawa Timur
Tranggono Universitas Pembangunan Nasional "Veteran" Jawa Timur https://orcid.org/0000-0002-5256-3644
Yekti Condro Winursito Universitas Pembangunan Nasional "Veteran" Jawa Timur

Keywords:

AHP , ARAS , Priority value , Business strategy

Abstract

Companies need to develop a good business strategy in order to compete, including in choosing quality raw materials from the best suppliers. This research aims to select the best steel plate raw material supplier at company XYZ by using the Analytical Hierarchy Process (AHP) and Additive Ratio Assessment (ARAS) methods. This research involves the process of primary and secondary data collection which includes identifying supplier selection criteria, collecting data for each criterion, and collecting performance data from suppliers. The results showed that the order of the best steel plate raw material suppliers at company XYZ with the largest value was ranked 1^st supplier company Steel Kras with a K value of 0,195207; ranked 2^nd supplier company Jaraindo with a K value of 0,137696; ranked 3^rd supplier company Capris with a K value of 0,135158; ranked 4^th supplier company Kamaseta with a K value of 0,116481; ranked 5^th supplier company Wima Indo with a K value of 0,106039 and ranked 6^th supplier company Cenia Mandiri with a K value of 0,084586. Based on the AHP and ARAS methods, the relative weight of each criterion has been calculated, which helps in evaluating the best or potential suppliers to choose from. In addition, the ranking of suppliers is also determined based on the resulting priority value.

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