Track: Operations Management

Abstract

The increasing electricity demand and consumption push electricity supply must always be available in maximum capacity. Selection of suppliers is an important process to overcome the risk of failure in procurement, but it is a difficult task because it takes many consideration based on the criteria. This study proposes a selection model of spare parts suppliers in power plants using a combination of Analytical Hierarchy Process (AHP) and Preference Ranking of Organization Method for Enrichment Evaluation (PROMETHEE) method. AHP is used to determine the importance weight of criteria and PROMETHEE to produce a ranking of suppliers. This model is applied to select suppliers for fin tube and solenoid valve. Results show that Supplier D, which has the shortest lead time even not the lowest price, is selected out of four suppliers for fin tube and Supplier E, which has the lowest price with the shortest lead time, is selected from three suppliers for solenoid valve. This paper also tests 3 number of scenarios against the model.