SUPPLIER EVALUATION AT TIRTA MULIA KARIMUN REGIONAL PUBLIC COMPANY USING THE ANALYTICAL HIERARCHY PROCESS (AHP) METHOD
DOI:
https://doi.org/10.35631/AIJBES.829006Keywords:
Analytical Hierarchy Process, Public Sector, Supplier Evaluation, Supplier Performance, Water Service ProviderAbstract
Water is a very important source of life for society. The need for water for daily use in each region certainly varies, depending on the level of water consumption. Fulfillment of clean water for the people of Karimun Regency is managed by Regional Public Company Tirta Mulia Karimun. As a clean water service provider, the company must have strategies and more than one supplier as a precautionary measure to meet future needs that will continue to grow. With right suppliers, company can save on material costs, increase profits, and reduce the risk of disruptions. This study aims to evaluate supplier performance based on criteria that are indicators of measuring supplier performance using AHP method to conduct an in-depth assessment of various criteria that are relevant in supplier evaluation. Supplier performance evaluation is measured based on criteria as indicators such as quality, delivery, cost price, warranties and claims, supplier profile, and relationship and communication. The results of this study show that cost price criteria are the most important criteria in evaluating supplier performance with a weight value of 0.226. Followed by warranties and claims, supplier profile, delivery, relationship and communication, and quality. This indicates that when evaluating supplier performance at the company, respondents place greater emphasis on the cost price than on other criteria. In this study on supply chain management, the indicators used to measure cost/price criteria are discounts conformity and the overall cost or price. While the first rank of suppliers who have the most superior performance based on AHP is Supplier A with a weight value of 45.6313. Followed by Supplier B and Supplier C. This research is expected to help company in evaluating supplier performance to improve operational efficiency and potentially enhance customer satisfaction based on criteria that are indicators in assessing supplier performance.
Downloads
References
Anggraeni, R., & Maulani, I. E. 2023. Pengaruh Teknologi Informasi terhadap Perkembangan Bisnis Modern. Jurnal Sosial dan Teknologi (SOSTECH), 3(2).
Ardiansyah, M. F., Isyanto, P., & Sumarni, N. 2024. Pengaruh Service Quality dan After Sales Service terhadap Customer Loyalty pada OPS Garage. Jurnal Kajian Ekonomi & Bisnis Islam, 5(4), 2275-2287.
Badan Pusat Statistik Indonesia. 2024. Jumlah Penduduk Pertengahan Tahun – Tabel Statistik. Badan Pusat Statistik. Retrieved from https://www.bps.go.id/id/statistics-table/2/MTk3NSMy/jumlah-penduduk-pertengahan-tahun--ribu-jiwa-.html
Chopra, S., & Meindl, P. (2016). Supply Chain Management: Strategy, Plainningm and Operation (6th ed.). Perason.
Cresswell, J. W. 2018. Research Design: Qualitative, Quantitative, and Mixed Methods Approaches (5th ed.). SAGE
Dispendukcapil Kabupaten Karimun. 2024. Data Penduduk Kabupaten Karimun. Retrieved from https://dukcapil.karimunkab.go.id/
Ghaffar, A. A., & Indrawati. 2024. The Assessment of Usability and Service Quality in E-Commerce Using the Integration of Analytical Hierarchy Process (AHP) and Technique for Order Performance by Similarity to Ideal Solution (TOPSIS). Asian Journal of Business and Accounting, 17(1). https://doi.org/10.22452/ajba.vol17no1.7
Hasiani, F. M. U., Haryanti, T., Rinawati, & Kurniawati, L. 2021. Sistem Pendukung Keputusan Pemilihan Supplier Produk Ritel dengan Metode Analytical Hierarchy Process. SISTEMASI: Jurnal Sistem Informasi, 10(1), 152-162.
Heizer, J., Render, B., & Munson, C. 2020. Operations Management: Sustainability and Supply Chain Management (13th ed.). Pearson
Hildawati, Suhirman, L., Prisuna, B. F., Husnita, L., Mardikawati, B., Isnaini, S., Wakhyudin, Setiawan, H., Hadiyat, Y., M, A., & Saktisyahputra. 2024. Buku Ajar Metodologi Penelitian Kuantitatif & Aplikasi Pengolahan Analisa Data Statistik. PT. Sonpedia Publishing Indonesia.
Himawan, A. F. I., Priyana, E. D., & Sidik, M. H. 2022. Analisis Congestion Faktor Pada Logistik Alkes & Obat Rumah Sakit Muhammadiyah Dengan Analytical Hierarchy Process. Jurnal Manajerial, 9(3), 316 - 337. https://doi.org/10.30587/jurnalmanajerial.v9i03.4360
Kotler, P., Armstrong, G., & Balasubramanian, S. 2023. Principles of Marketing (19th ed.). Pearson.
Lou, Z., Ye, A., Mao, J., & Zhang, C. 2022. Supplier selection, control mechanisms, and firm innovation: configuration analysis based on fsQCA. Journal of Business Research, 139, 81-89.
Nikseresht, A., Shokouhyar, S., Tirkolaee, E. B., Nikookar, E., & Shokoohyar, S. 2024. An intelligent decision support system for warranty claims forecasting: Merits of social media and quality function deployment. Technological Forecasting & Social Change, 201.
Octavian, D., & Himawan, A. F. I. 2021. Supplier Quality Assessment at PT. Polowijo Gosari Through Analytical Hierarchy Process Approach. UMMagelang Conference Series, 277 - 289. Retrieved from http://journal.unimma.ac.id/index.php/conference/article/view/5877%0Ahttps://journal.unimma.ac.id/index.php/
Purba, S., Kristina, S., & Setiawati, M. 2024. Analisis Pemilihan Supplier Bahan Baku Daging Halal di Restoran Beken BBQ Bandung Menggunakan Metode Fuzzy AHP. JEIS (Journal Engineering in Industrial Systems), 1(5), 70 - 82.
Qureshi, S. A., Naseem, A., & Ahmad, Y. 2023. Outsourcing or in-house manufacturing in Hi-tech industry: supply chain process with Delphi-AHP approach. Emerald Publishing Limited, 2799-2823. http://dx.doi.org/10.1108/K-08-2022-1172
Rahman, F. 2024. Kebutuhan Air Harian Rumah Tangga, Aksesibilitas dan Kesehatan. PSLH UGM. Retrieved from https://pslh.ugm.ac.id/kebutuhan-air-harian-rumah-tangga-aksesibilitas-dan-kesehatan/
Saaty, T. L., & Vargas, L. G. 2012. Models, Methods, Concepts & Applications of the Analytic Hierarchy Process (2nd ed., Vol. 175). Springer US.
Sabila, K., Murasih, S., & Hendra, J. (2024). Analisis Rasio Likuiditas Pendekatan Empiris dalam Evaluasi Finansial Perusahaan. Jurnal EK&BI, 7(1).
Sinaga, S. O. 2024. Analysis of Determining the Cost of Goods Production Using the Full Costing Method as a Basis for Determining the Selling Price of Rubber Rubber at PT. Sinar Belantara Indah. Luxury: Landscape of Business Administration, 2(1).
Stevenson, W. J. 2021. Operation Management (14th ed.). McGraw-Hill Education.
Sugiyono. 2022. Metode Penelitian Manajemen. ALFABETA
Tarigan, Y., Devano, A. M., Harlan, F. B., Arzaman, A. F. M., Nadia, L., & Rashid, N. 2024. Supplier Selection Analysis for Sand Materials Using AHP in the Indonesian Manufacturing Industry. Journal Européen des Systèmes Automatisés, 57(3), 805 - 813. http://dx.doi.org/10.18280/jesa.570319
Xin, Z., Zhang, Z., & Xiang, C. 2024. Do Suppliers Value Clients' ESG Profiles? Evidence from Chinese firms. International Review of Economic & Finance, 91, 241-258.
Zulkeifli, N. Y., Jamri, M. H., Ridzuan, A. R., Khairuddin, K., Rani, N. S. A., Hadi, S. N. I. A., & Ibrahim, N. A. N. 2023. Communication as a Strategy in Enhancing an Organization Performance. International Journal of Academic Research in Business & Social Sciences, 13(10), 2041-20
