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Performance evaluation of a rig tools supplier by using a fuzzy analytical hierarchy process method

Author

Listed:
  • Misra Hartati
  • Ismu Kusumanto
  • Ekie Gilang
  • Melfa Yola
  • Zarnelly Zarnelly
  • Puja Heryanti

Abstract

This case study was conducted at a petroleum drilling. In order to fulfil the company's needs, the Department of Supply Chain Management is responsible in the procurements of goods. In this department, there is a procurement division which takes the role of procuring goods towards the suppliers. But all this time, the procurement division is only considering which supplier is going to be used based on the lowest price offer only. But all this time, the procurement division is only considering which supplier is going to be used based on the lowest price offer, and not considering problems caused by suppliers that often lead to the company's loss. This research aims to find out the criteria used in evaluating supplier performance and determining which supplier has the best performance by using fuzzy AHP method. Of the 23 criteria identified, the important criteria that were suitable for evaluating supplier performance were obtained. These criteria are quality, price, delivery, company structure, behaviour, service, and geographic location. In this case study, the chosen supplier is supplier 3. The chosen supplier is supplier 3.

Suggested Citation

  • Misra Hartati & Ismu Kusumanto & Ekie Gilang & Melfa Yola & Zarnelly Zarnelly & Puja Heryanti, 2022. "Performance evaluation of a rig tools supplier by using a fuzzy analytical hierarchy process method," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 30(3/4), pages 567-580.
    • Handle: RePEc:ids:ijbglo:v:30:y:2022:i:3/4:p:567-580
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