Track: Optimization

Abstract

This study presents a supplier selection planning for companies that adopt multi source strategy, where some category of components supplied by several suppliers. Having several suppliers can be the right choice when a supplier has capacity problems, backup sources are needed to protect against material shortages, and the need to maintain competition among suppliers. Criteria for the supplier selection is quality, delivery, and cost activity performance of
the suppliers. The Delphi method is used to obtain comparison of importance degree between all criteria. After that the data become input for criteria priority analysis using AHP method. Finally, the criteria priority data used as criteria weight for selecting supplier using TOPSIS method. The result of these three main steps in this study is supplier ranking that represents their performance of quality, delivery, and cost activity. Decision makers can use the supplier
ranking data as reference for deciding future business intention with each supplier.

Keywords
Supplier selection, Multi source, Delphi, AHP and TOPSIS.