Application of Analytical Hierarchy Process Method on the Selection Process of Fresh Fruit Bunch Palm Oil Supplier (Case Study: Pt Sahabat Mewah and Makmur)


Authors : Herdy Prayudy, Tukhas Shilul Imaroh

Volume/Issue : Volume 4 - 2019, Issue 8 - August

Google Scholar : https://goo.gl/DF9R4u

Scribd : https://bit.ly/2lQsiBz

This study aimed to analyze the selection criteria of suppliers at PT Sahabat Mewah dan Makmur located in Jangkang Village, Dendang District, East Belitung Regency, a company engaged in the planting and integrated harvesting of Fresh Fruit Bunches (FFB) from oil palm plantations, processing FFB into Crude Palm Oil (CPO) and core crude oil, Palm Kernel (PK), and sells Crude Palm Oil (CPO) and Palm Kernel (PK). There are twelve partners (suppliers) work with the companies to handle the process of procuring outside fresh fruit bunches in the processing of fresh fruit bunches into crude palm oil. Suppliers are burdened with the same activities and responsibilities with different quality and delivery achievements. Based on these findings, the researcher intends to determine the priority criteria, priority sub- criteria and alternative priorities and the level of consistency of answers from the respondents who are the workers of PT Sahabat Mewah and Makmur plantation area. In this study, the author used the Analytical Hierarchy Process (AHP) method to determine the priorities of the criteria, sub criteria and alternatives which were tested for the level of consistency of the respondents' answers. The results of the priority sequence at the criteria level in this study shows that the quality placed the highest priority with 0.276 scores followed by management and organization that got 0.227 scores, shipping with 0.173 scores, flexibility with 0.165 scores and the price with 0.160 scores. The order of global priorities at the alternative level are Koperasi Anugrah followed by PT Agro Inti Abadi, CV Tata Subur Makmur, PT Rawi Agro Mandiri, PT Tri Selaras Agri, and KUD Bakti. The value of Consistency Ratio (CR) in the pairwise comparison matrix between criteria, sub-criteria and overall alternatives was at the tolerance limit stating that the answers of the respondents are classified into valid and consistent category.

Keywords : Supplier, Kriteria, Subkriteria, Analytical Hierarchy Process.

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