FASHION COMPANY, SUPPLIER SELECTION, ANALYTICS HIERARCHY PROCESS

• Main Author: Dzaki, Mahfudz
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75636
• Institution: Institut Teknologi Bandung

The annual growth rate of the fashion industry in Indonesia has reached 4.21%, with a projected market volume of USD 10.526 million in 2025. The fast growth rate in the fashion industry can be an indication of high demand and competition in the market. Companies need to develop strategies to survive and thrive in these market conditions. One of the important strategies for fashion companies is to have an efficient production system to optimize operations and resource management. In this production system, suppliers are needed for companies that implement outsourcing systems to meet unmet demand needs. To guarantee and improve product quality, it is necessary to select suppliers so that there is conformity between suppliers and the standard needs and requirements of the company. One method that can be used in supplier selection is the Analytical Hierarchy Process (AHP) method, which is a decision-making method that involves considering and making priority scales in multi-variable cases. This research study is an application of supplier selection in the Beyond Company case study using the Analytical Hierarchy Process analysis. This research study aims to use the AHP method to determine the priority scale of each criterion that meets the Beyond Company requirements and provide supplier recommendations to the company in accordance with the supplier selection analysis. To determine the importance of the criteria and evaluate alternatives based on each criterion, the Founder of Beyond Company acts as an expert judgement in determining and evaluating each criterion and alternative through focus group discussions and questionnaires. Focus Group Discussion is used as a medium to validate criteria based on previous studies. Based on the results of determining these criteria, the questionnaire will generate pairwise comparisons for each criterion of each respondent and will be averaged using the geometric mean to produce a value that will be used in calculating the weight of each criterion. Calculations using the AHP method in this study use Microsoft Excel software for structuring the formulas within the calculation steps and generating levels of importance for each criterion and alternative. The order of importance of the criteria is Quality (0.350), Cost (0.187), Flexibility (0.223), Communication (0.083), and Capability (0.157). While the order of importance for alternatives is Alternative BPA (0.151), Alternative SSM (0.353), and Alternative EXC (0.496). From the results of this analysis, it can be concluded that Alternative EXC is the best supplier that can be used by Beyond companies in the next production process.