EVALUATION OF SUPPLIER PERFORMANCE USING AHP (ANALYTICAL HIERARCHY PROCESS) IN PT. PGI
Abstract
This study aims at evaluating the performance of suppliers in PT PGI. As a new company, PT PGI does not have a system for evaluating the suppliers used and only rely on intuition. Therefore, a periodically evaluation should be taken into account to repair the supply chain system from the upstream line. The evaluation is conducted for the accessories supplier such as interlining, thread, buttons, labels, and zipper with the assessment criteria of quality, price, delivery, flexibility and responsibility. The method used in this research is the Analytical Hierarchy Process (AHP) based on the weight of priority. The results show the priority weight for each criterion are the price (0.431), shipping (0.242), quality (0.229), responsiveness (0.066) and flexibility (0.032). The analysis of supplier performance in the group suggest PPC Indonesia (0.823) as an interlining supplier, MJM (0.885) as a supplier of thread, copyright Button (0.327) as the supplier of button and Golden Labelindo (0.722) as a supplier label, and YKK (0.732) as the supplier of the zipper