Evaluation of Supplier Performance in Plastic Manufacturing Industry: A Case Study

D M Utama1, T Baroto 1, M F Ibrahim2, D S Widodo3
1Department Industrial Engineering, University of Muhammadiyah Malang, Jl.
Tlogomas No. 246, 65144 Malang, East Java, Indonesia
2Logistics Department, Universitas Internasional Semen Indonesia Jl. Veteran
Kabupaten Gresik, Jawa Timur 61122, Indonesia
3Department of Manufacturing Technology, Vocational Faculty, University of 17
Agustus 1945 Surabaya Jl. Semolowaru 60118 East Java, Indonesia
Email: dana@umm.ac.id, teguh@umm.ac.id, faisalibrahim.ie@gmail.com,
diansetiyawidodo@untag-sby.ac.id

Abstract

The supplier is an essential element in the production process because it supplies raw materials. In the supply chain, supplier performance evaluation is an essential factor. This evaluation is used to assess supplier performance in improving company performance. This study aims to evaluate supplier performance using the integration of the Analytical Hierarchy Process (AHP) and Standardized Unitless Rating (SUR) methods. AHP is proposed for the determination of criteria weights, and SUR is used to evaluate supplier performance. Criteria weights on AHP are used in the SUR method to evaluate supplier performance. A case study was carried out in the plastic manufacturing industry in Indonesia. The criteria used include Quality (Q), Cost (C), Delivery (D), Flexibility (F), Responsiveness (R), Warranty and claim policies (W), and Environmental management system (E). The results showed that cost is the most critical criterion in evaluating supplier performance. The results also showed that AHP and SUR were effectively used to evaluate supplier performance.

Keywords: Evaluation, Supplier, Performance, AHP, SUR

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