An Integration Method for Supplier Selection: A Practical Study in the Indonesian Concrete Company

Agus Ristono

doi:10.31436/iiumej.v26i2.3575

Authors

Agus Ristono Universitas Pembangunan Nasional Veteran Yogyakarta https://orcid.org/0000-0002-0694-0859

DOI:

https://doi.org/10.31436/iiumej.v26i2.3575

Keywords:

Fuzzy Delphi Method, F SWARA II, MEREC, F MARCOS, Supplier evaluation

Abstract

The construction of toll roads in Indonesia has massively increased the need for concrete. Therefore, concrete manufacturing companies must select new raw material suppliers for concrete. This selection is based on several criteria, including qualitative and quantitative criteria. This study proposes a new methodology for supplier selection. The model captures decision-makers' dynamics in ranking suppliers by integrating quantitative and qualitative criteria. The first stage in the proposed model is determining the criteria using the Fuzzy Delphi Method (FDM). The second stage is weighting the criteria using the Fuzzy Step-wise Assessment Ratio (F-SWARA) II and the Method Based on Removal Effects of Criteria (MEREC). The last stage is supplier assessment using Fuzzy Measurement of Alternatives and Ranking According to Compromise Solution (F-MARCOS). One of Indonesia's largest concrete manufacturing companies was used to validate the proposed model. The results showed that the proposed model is valid and more effective than some previous methods. The company in the case study experienced a 5% reduction in production costs in the later stages of the toll project, following several months of implementation, indicating the effectiveness of the proposed methodology.

ABSTRAK: Pembinaan jalan tol di Indonesia telah meningkatkan keperluan konkrit secara besar-besaran. Oleh itu, syarikat pembuatan konkrit mesti memilih pembekal bahan mentah baru konkrit. Pemilihan ini berdasarkan beberapa kriteria, termasuk kriteria kualitatif dan kuantitatif. Kajian ini mencadangkan metodologi baru untuk pemilihan pembekal. Model ini menfokuskan pembuat keputusan dinamik dalam kedudukan pembekal dengan menyepadu kedua-dua kriteria kuantitatif dan kualitatif. Peringkat pertama dalam model yang dicadangkan ini adalah menentukan kriteria menggunakan Kaedah Rawak Delphi (FDM). Peringkat kedua adalah menimbang kriteria menggunakan Nisbah Pentaksiran Rawak Langkah-Bijak (F-SWARA) II dan kaedah berdasarkan Kriteria Kesan Pengasingan (MEREC). Peringkat terakhir merupakan penilaian pembekal menggunakan Solusi Kompromi berdasarkan Pengukuran Rawak Alternatif dan Kedudukan (F-MARCOS). Salah satu syarikat pembuatan konkrit terbesar di Indonesia telah digunakan bagi mengesahkan model yang dicadangkan. Dapatan kajian menunjukkan bahawa model yang dicadangkan ini adalah sah dan lebih berkesan berbanding beberapa kaedah sebelumnya. Syarikat dalam kes kajian mengalami pengurangan 5% dalam kos pengeluaran pada peringkat akhir projek tol, iaitu selepas beberapa bulan pelaksanaan, menunjukkan keberkesanan metodologi yang dicadangkan.

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