APPLICATION OF SUBCONTRACTOR SELECTION USING ANALYTICAL HIERARCHY PROCESS METHOD IN RITZ GARMENT

• Main Author: Ramadhani, Muthia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64729
• Institution: Institut Teknologi Bandung

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