A DECISION SUPPORT SYSTEM FOR SUPPLIER SELECTION USING FUZZY TOPSIS METHOD IN PROCUREMENT DIVISION OF PT X

• Main Author: MELINDA NIM 14412048, RIZKA
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/30571
• Institution: Institut Teknologi Bandung

PT X is one of many companies that explores and produces oil and natural gas in Indonesia. During their journey, PT X requires materials/goods and services that can support the company’s operational activities. The fulfillment of the needs for materials/goods and services is done through procurement process so that procurement process becomes an important activity because the results of procurement process will affect company’s operational activities. The procurement process within oil and gas company in Indonesia has been regulated by SKK Migas as the regulator of upstream oil and natural gas activities in the “Pedoman Tata Kerja Pengelolaan Rantai Suplai nomor PTK-007/SKKO0000/2015/S0 (Revisi-03) Buku Kedua yaitu Pedoman Pelaksanaan Pengadaan Barang/Jasa”. <br /> <br /> <br /> One of many important activities in procurement process is supplier selection. The supplier selection in PT X is done by Tender Process. There are 3 methods of tender process implementation at PT X that are general auction, direct selection, and direct appointment. Supplier selection is a decision-making process involving multiple criteria. In determining the winner of the tender, the assessment is based on 3 written aspects of administration, technical and commercial. However, the importance of each aspect and other factors in the consideration of determining the winning candidates is not taken into account. The determination of potential winning bidders is only done based on the lowest bid price. Therefore, an improved system is needed that can accommodate including other criteria in the supplier selection process that provides recommendations consisting of selected suppliers in order to improve the quality of supplier selection decisions. <br /> <br /> <br /> This research resulted in the design of decision support system (DSS) that can accommodate the supplier selection process with multiple criteria. The decision model used as the base model is the TOPSIS fuzzy method. However, it needs to be adjusted to the model in order to meet the needs of this research. The design of decision support system conducted in this study consists of designing decision models, database design, and application software design. The design of decision models consists of determining supplier selection criteria. Database design was made by tool entity relationship diagram (ERD), and the interface design was made by using Microsoft Excel and Visual Basic for Application.