APPLICATION OF SUBCONTRACTOR SELECTION USING ANALYTICAL HIERARCHY PROCESS METHOD IN RITZ GARMENT
As the garment industry increases, subcontractors are needed to help companies fulfill the demand that cannot be met. To manage subcontractors to keep the quality of the products, subcontractor selection should be conducted to ensure subcontractors that are selected to cooperate are able to meet...
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| Format: | Final Project |
| Language: | Indonesia |
| Online Access: | https://digilib.itb.ac.id/gdl/view/64729 |
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| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | As the garment industry increases, subcontractors are needed to help companies fulfill the demand
that cannot be met. To manage subcontractors to keep the quality of the products, subcontractor
selection should be conducted to ensure subcontractors that are selected to cooperate are able to
meet the company’s requirement. One of the methods that can be used to conduct subcontractor
selection is Analytical Hierarchy Process (AHP) method, which is s decision-making method that
is used when there are various criteria that have to be considered. This research is an application
of subcontractor selection that is conducted in Ritz Garment, which is a garment manufacturer,
using AHP method. This research aims to determine the level of importance of the criteria and
sub-criteria that are used for subcontractor selection for Ritz Garment, assess the performance of
current and alternative subcontractors, and provide recommendation for Ritz Garment based on
the subcontractor selection.
To determine the importance of the criteria and sub-criteria and also to score alternatives towards
each of the sub-criteria, decision makers which are the manager and owner of Ritz Garment are
interviewed as respondents to get their expert judgement. The interview will generate pairwise
comparison for each criteria and sub-criteria from each respondent that will be averaged using
geometric mean to get the numbers that will be used to calculate the weight of each criteria and
sub-criteria. From the result of this research that is conducted using AHP method with the Expert
Choice software, level of importance for each criterion and alternatives are obtained. The order
of importance of criteria is Quality (0.296), Cost (0.290), Reliability (0.273), Delivery (0.080),
and Flexibility (0.061). The sequence for sub-criteria Global Weight is Defect Rate (0.156),
Trustworthy (0.154), Internal Cost (0.153), Conformance Quality (0.140), Product Price (0.137),
Product Reliability (0.119), Customization (0.051), Compliance with Quantity (0.045),
Compliance with Schedule (0.035), and Product Volume Changes (0.010). For the alternatives,
the order of importance is Alternative Subcontractor 1 (7.667), Alternative Subcontractor 2
(0.7.314), Alternative Subcontractor 3 (7.099) and Current Subcontractor (6.266). From the
result, it is concluded that Alternative Subcontractor 1 is the best subcontractor to replace Current
Subcontractor |
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