| Issue |
E3S Web Conf.
Volume 484, 2024
The 4th Faculty of Industrial Technology International Congress: Development of Multidisciplinary Science and Engineering for Enhancing Innovation and Reputation (FoITIC 2023)
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|---|---|---|
| Article Number | 01015 | |
| Number of page(s) | 7 | |
| Section | Manufacturing, Process, and Business Advancement | |
| DOI | https://doi.org/10.1051/e3sconf/202448401015 | |
| Published online | 07 February 2024 | |
Suppliers Evaluation Based on Vendor Performance Indicator (VPI) and Analytical Hierarchy Process (AHP)
Industrial Engineering, Institut Teknologi Nasional Bandung, Indonesia
* Corresponding author: yuniar@itenas.ac.id
Evaluation of supplier performance is an important factor in the supply chain process because it can be one of the company’s strategies to increase customer satisfaction. In selecting suppliers, most companies only focus on the sole consideration of price and raw material availability. This approach makes the supplier selection suboptimal, resulting in non-conformance to order specifications and delivery delays. This study conducted a supplier performance evaluation to provide an assessment of suppliers, enabling the company to identify the strengths and weaknesses of each supplier using the Vendor Performance Indicator (VPI) framework Quality, Cost, Delivery, Flexibility, and Responsiveness, which consists of a total of 13 sub-criteria and employs the Analytical Hierarchy Process (AHP). Based on results, the weighted values for suppliers I, K, L, M, and J were 0.285, 0.275, 0.185, 0.142, and 0.112, respectively. Based on the result, it is recommended that the company adopts a periodic to effectively monitor supplier performance, for better supplier selection and enhanced operational efficiency.
© The Authors, published by EDP Sciences, 2024
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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