Selection of Shipping Container Vendors Using Analytical Hierarchy Process (AHP)

Muhammad Jumandono, Moses Laksono Singgih

Abstract


This research was conducted on a service company in Surabaya engaged in forwarder/ logistic using containers. Customers from this company spread in East Java, such as Surabaya, Sidoarjo, Gresik, and Mojokerto. The chosen export destination is exporting to the Middle East, such as Saudi Arabia and Qatar. The problem faced by the company is the selection of container vendors for shipping exports to the Middle East. There are 3 shipping container vendors that are often used for shipping to the Middle East, namely vendors A, B, dan C. This research uses the FGD method and Analytical Hierarchy Process (AHP) method. The FGD method is a method used to find answers to each problem through expert forums or discussion groups. This method will produce relevant criteria. This FGD method will be combined with the AHP method which has a good structure. This is evidenced by the matrices produced until a consistency test. AHP method can solve problems that have multi-criteria up to sub-criteria. Systematic criteria assessment with the first rank in a row until the last rank is the Quality (22.6%), Cost (22.4%), Time (18.3%), Bankruptcy (7.6%), Long-term Cooperation (6.9%), Order Fulfillment (6.1%), Company Profile (5.6%), Standard and Environmental Certification (5.4%), and Exploitation Contract (5.1%). The chosen vendor is vendor B has the highest priority (36.8%), then followed by vendor A is ranked second (33.9%), and the last is vendor C (29.3%)

Keywords


vendor selection; criteria; FGD method; AHP method; and alternatives/choices

Full Text:

PDF

References


M. Shahvali and K. Zarafshani, “Using PRA techniques as metacognitive strategies to develop indigenous knowledge – a case study,” Int. Soc. Sci. J., vol. 54, no. 173, pp. 413–419, Sep. 2002.

P. S. Kidd and M. B. Parshall, “Getting the focus and the group: Enhancing analytical rigor in focus group research,” Qual. Health Res., vol. 10, no. 3, pp. 293–308, May 2000.

R. Kraaijvanger, M. Sonneveld, C. Almekinders, and T. Veldkamp, “Comparison of methods to identify crop productivity constraints in developing countries. A review,” Agron. Sustain. Dev., vol. 35, no. 2, pp. 625–637, Apr. 2015.

L. L. Trenkner and C. L. Achterberg, “Use of focus groups in evaluating nutrition education materials.,” J. Am. Diet. Assoc., vol. 91, no. 12, pp. 1577–81, Dec. 1991.

T. L. Saaty, Decision Making for Leaders : The Analytical Hierarchy Process for Decisions in a Complex World. Pittsburgh, Pennsylvania: RWS Publications, 1999.

U. Ciptomulyono, “Fuzzy goal programming approach for deriving priority weights in the Analytical Hierarchy Process (AHP) method,” J. Appl. Sci. Res., vol. 4, no. 2, pp. 171–177, 2008.

D. Darmapala and M. L. Singgih, “Risk Based Maintenance (RBM) untuk natural gas pipeline pada perusahaan X dengan menggunakan metode kombinasi AHP-index model,” in Prosiding Seminar Nasional Manajemen Teknologi XV, 2012, p. A1.1-A1.8.

R. Alikhani, S. A. Torabi, and N. Altay, “Strategic supplier selection under sustainability and risk criteria,” Int. J. Prod. Econ., vol. 208, pp. 69–82, Feb. 2019.

A. H. Azadnia, M. Z. M. Saman, and K. Y. Wong, “Sustainable supplier selection and order lot-sizing: an integrated multi-objective decision-making process,” Int. J. Prod. Res., vol. 53, no. 2, pp. 383–408, Jan. 2015.

C. Y. Chiou, C. W. Hsu, and W. Y. Hwang, “Comparative investigation on green supplier selection of the American, Japanese and Taiwanese Electronics Industry in China,” in 2008 IEEE International Conference on Industrial Engineering and Engineering Management, 2008, pp. 1909–1914.

R. M. Grisi, L. Guerra, and G. Naviglio, “Supplier Performance Evaluation for Green Supply Chain Management,” in Business Performance Measurement and Management, Berlin, Heidelberg: Springer Berlin Heidelberg, 2010, pp. 149–163.

R. J. Kuo, Y. C. Wang, and F. C. Tien, “Integration of artificial neural network and MADA methods for green supplier selection,” J. Clean. Prod., vol. 18, no. 12, pp. 1161–1170, Aug. 2010.

Z. Xiao, W. Chen, and L. Li, “An integrated FCM and fuzzy soft set for supplier selection problem based on risk evaluation,” Appl. Math. Model., vol. 36, no. 4, pp. 1444–1454, Apr. 2012.

R. Valverde and M. Talla, “Risk reduction of the supply chain through pooling losses in case of bankruptcy of suppliers using theblack-scholes-merton pricing model,” in Some Recent Advances in Mathematics and Statistics, World Scientific, 2013, pp. 248–256.

A. H. I. Lee, H.-Y. Kang, C.-F. Hsu, and H.-C. Hung, “A green supplier selection model for high-tech industry,” Expert Syst. Appl., vol. 36, no. 4, pp. 7917–7927, May 2009.

K. H. Wathne and J. B. Heide, “Opportunism in interfirm relationships: Forms, outcomes, and solutions,” J. Mark., vol. 64, no. 4, pp. 36–51, 2000.

X. Deng, Y. Hu, Y. Deng, and S. Mahadevan, “Supplier selection using AHP methodology extended by D numbers,” Expert Syst. Appl., vol. 41, no. 1, pp. 156–167, Jan. 2014.




DOI: http://dx.doi.org/10.12962/j23546026.y2019i5.6363

Refbacks

  • There are currently no refbacks.


View my Stat: Click Here

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.