Track: Modeling and Simulation

Abstract

The UDFM is an enterprise located in Yogyakarta that produces leather products. Consumers nowadays demand of quality products with the shortest production time possible. However, quality products begin from quality raw materials that meet company’s predetermined specifications. Unfortunately, raw materials often fail to fulfil the company’s expectation. This discrepancy indicates that the suppliers’ role is less optimized. This study was performed to enhance the selection of suppliers in the Indonesian leather firm2 based on certain criteria and sub-criteria predetermined by the company. The criteria included quality, price, delivery, service, company profile, and risk. The Analytical Hierarchy Process (AHP) and Technique for Order Preference By Similarity To Ideal Solution (TOPSIS) were employed in the selection process. After identification and assessment process completed, a proposal was submitted to select the most appropriate supplier. The results of this study showed the performance values of the four suppliers, namely supplier A of 6.25%; supplier B of 31.25%; supplier C of 43.75%; and supplier D of 18.75%. Supplier C obtained the highest performance value, which indicated that supplier C made the most appropriate main supplier for company.