THE IMPLEMENTATION OF ANALYTICAL HIERARCHY PROCESS (AHP) TO SELECT THE BEST VENDOR FOR BIO-EFFICACY TRIALS (CASE STUDY: THE XYZ AGROCHEMICAL COMPANY)

• Main Author: Astriani, Maria
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83615
• Institution: Institut Teknologi Bandung

The pesticide industry is highly regulated by various regulations and requirements. Getting a distribution permit for a pesticide depends on the results of bio-efficacy trials carried out by institutions outside the company (vendors). These vendors must be selected from a list that has been made by the Ministry of Agriculture. Choosing a vendor is quite a difficult endeavor because not all vendors have the same competencies. One method to choose a vendor among several vendors based on various criteria hierarchically that meets the requirements is to use the Analytical Hierarchy Process (AHP) method. This thesis presents the results of the trial of the use of the AHP method in the XYZ Agrochemical Company using a qualitative and quantitative approach by collecting primary data through questionnaires and interviews with a team of Research and Development experts from the XYZ Agrochemical Company. Secondary data was obtained from government regulations, company reports, and relevant literature to form vendor profiles, organizational capabilities, and pesticide regulations that apply specifically to Indonesia. Through the AHP framework, based on the results of the interview, a hierarchical structure of evaluation criteria in selecting vendors was established, including expertise, past performance, laboratory and field facilities, timely delivery, in conducting bioefficacy trials, and vendor responsiveness in communicating. Paired comparisons in the AHP model provide weight for each criterion, allowing for a systematic evaluation of the vendor's capabilities. The results of the case study at the XYZ Agrochemical Company show the practical application of the AHP model in real-world vendor selection scenarios, providing an overview of the relative significance of each criterion and its impact on the overall decisionmaking process. AHP analysis empowers agrochemical companies to rank vendors objectively, facilitating data-driven selections and informative choices.