The Implementation of Analytic Hierarchy Process on the Selection of Supplier in Start-Up Business: A Case Study

Abstract

The purpose of this research is to determine the prioritized suppliers according to the criteria made by Batik Canting, a Start-up Business selling Batik Shoes in Surabaya. The process of selection considers multi-criteria of quality, delivery and price. The data collection methods in this study include interview and questionnaire. Judgmental sampling is used to determine informants who have knowledge and experience in selection of suppliers. These informants are people from the internal management as well as other external informants. Furthermore, data are analyzed using Analytic Hierarchy Process (AHP). The result indicates the hierarchy of criteria and sub-criteria. The most important criteria is the product quality, followed by delivery, and price. The rank of suppliers is determined, and it is shown that one supplier outperformed three others. Thus, the company is advised to choose suppliers that prioritize product quality in order to improve the perception and satisfaction level of the customers.