Implementing AHP Method for Determining Level Priority of Vendor Selection

Abstract

Vendors are suppliers of goods or services that help the production process of a company. One of
the companies that carry out vendor selection is CV Milyarda Cipta Karya which is engaged in
fashion. Vendor selection is an activity to determine vendors who will work with the company to
help the production process. Based on an assessment of the 30 most popular CV Milyarda Cipta
Karya's products on Shopee, there are consumer complaints about the inconsistent quality of
materials. This problem is caused by the absence of standards governing the mechanism for
selecting fabric vendors. Therefore, it is necessary to know the priority level of vendor selection
criteria. Vendor selection criteria are Quality of goods, response time, location, flexibility, price,
vendor inventory policy, and vendor service. The data needed in the design are vendor selection
criteria according to William J Stevenson, namely hierarchical data and criteria weighting
questionnaires. The method used to determine the priority level of vendor selection criteria is the
Analytical Hierarchy Process method. Based on the calculation of the AHP method, the results
obtained are the criteria for quality of goods 0.19, location 0.12, response time 0.12, vendor
inventory policy 0.09, flexibility 0.09, price 0.11, and vendor service 0.28. The largest priority value
is vendor service and the smallest is flexibility.