Implementation Of The Fuzzy Analytical Hierarchy Process (AHP) Ii Vendor Selection Decision Making for Sparing Procurement: A Case Study of PT Tuah Turangga Agung, East Jakarta

Abstract

Vendor selection is a critical process in supply chain management, particularly in industries that depend on the timely procurement of spare parts. This study investigates the application of the Fuzzy Analytical Hierarchy Process (Fuzzy AHP) to optimize the vendor selection process for sparing procurement at PT Tuah Turangga Agung, a metalworking company in East Jakarta. Traditional vendor selection methods often rely on subjective judgments, leading to inefficiencies and uncertainty. Fuzzy AHP, an extension of the Analytical Hierarchy Process (AHP), incorporates fuzzy logic to address these challenges by providing a more accurate and flexible decision- making approach in real-world procurement scenarios. The research identifies six key evaluation criteria: Quality, Cost, Delivery, Environment, Safety, and Morale. These criteria were derived through expert assessments and used in a pairwise comparison matrix, with fuzzy numbers applied to capture uncertainty in expert judgments. The results show that Fuzzy AHP offers a structured, reliable, and transparent framework for vendor evaluation, allowing for a more objective ranking of potential vendors. Vendor A4 emerged as the optimal choice, excelling in Quality, Environment, and Safety, which are essential for minimizing downtime and ensuring the availability of reliable spare parts. This research improves the sparing procurement process by providing a systematic approach to vendor selection, thereby reducing risks and enhancing decision-making efficiency. Additionally, it offers insights into the practical application of Fuzzy AHP in procurement, contributing to its broader use in industries where uncertainty plays a significant role in decision-making.