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Analysis Of Supplier Selection Prioritization Strategy Using The Analytical Hierarchy Process (AHP) Method

In: Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024)

Author

Listed:
  • Zaskia Dwi Hanifa

    (Hasanuddin University)

  • A. Ainun Jariyah

    (Hasanuddin University)

  • Sanusi Fattah

    (Hasanuddin University)

Abstract

This study evaluates the economic feasibility of applying the Analytical Hierarchy Process (AHP) for the supplier selection process at PT. Dari Timur Indonesia, a company engaged in the production of woven fabric products. The AHP method aids decision-makers in prioritizing suppliers by considering various key criteria such as price, product quality, customer service, order volume, and delivery timeliness. The process of supplier selection is crucial in ensuring operational efficiency, cost-effectiveness, and maintaining a competitive advantage within the industry. By using AHP, the ranking of suppliers is conducted systematically, allowing for a structured comparison of each criterion. This study also explores how supplier selection impacts the overall supply chain performance, including its ability to reduce operational costs and improve reliability. The research assesses the consistency and accuracy of the criteria used in AHP, validating its effectiveness as a decision-making framework. The findings show that integrating AHP into supplier selection significantly enhances supply chain management, leading to better operational outcomes, stronger supplier relationships, and improved resource allocation. This, in turn, contributes to greater organizational efficiency and long-term sustainability.

Suggested Citation

  • Zaskia Dwi Hanifa & A. Ainun Jariyah & Sanusi Fattah, 2025. "Analysis Of Supplier Selection Prioritization Strategy Using The Analytical Hierarchy Process (AHP) Method," Advances in Economics, Business and Management Research, in: Mursalim Nohong & Fitra Roman Cahaya & Phung Minh Tuan & Arifuddin Mannan & Anas Iswanto Anwar & Ria (ed.), Proceedings of the 9th International Conference on Accounting, Management, and Economics 2024 (ICAME 2024), pages 1263-1271, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-758-8_103
    DOI: 10.2991/978-94-6463-758-8_103
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