Redesign Determination of Plat Raw Material Supplier with Analytic Hierarchy Process (AHP) Approach: A Case Study

PT. XYZ is a company in the newspaper industry. The selection of suppliers so far is only based on the price offered and the promised delivery speed. The price offered by the supplier is also influenced by the exchange rate of the rupiah against the dollar resulting in price fluctuations in the purchase price of raw materials. Even though the price of raw materials has increased, newspaper prices have remained the same, and to avoid this problem, the company has supplied raw materials from many suppliers. The company has made good cooperation with several suppliers, but does not yet have the right supplier selection method and can be applied with a good planning process. Therefore, companies need to select suppliers with the right methods so that raw material orders are optimally fulfilled and get the best suppliers who can work together in the long run. In this study, the determination of the best suppliers is carried out on the raw material of the plate as well as important criteria in the selection of these suppliers . Data collection is done using interviews, questionnaires, and literature studies. Based on the results of data collection, among others, the purchase price, delivery time, maximum number of orders, the level of disability, and the distance of the supplier with the company. Data processing uses one of the MCDM (Multi Decision Making Criteria) methods, namely AHP (Analytic Hierarchy Process). With the results of supplier one being designated as the best supplier. This can be known with the highest final value in the final AHP calculation, with a value of 3.95643, and the criteria most considered in determining suppliers is the bid price.