Proximity Index Value for Supplier Selection Using Compromise Weighting of Stepwise Weight Assessment Ratio Analysis and The Method of Removal Effects Of Criteria: A Case Study in Indonesian Leather Industry

Agus Ristono (University of Pembangunan Nasional (UPN) Veteran Yogyakarta)

Journal of Applied Engineering and Technological Science (JAETS)
Vol. 6 No. 1 (2024): Journal of Applied Engineering and Technological Science (JAETS)

Procurement of new raw materials is needed when product demand increases, and raw material suppliers must be determined to meet the company's needs. This research examines what criteria a company needs when selecting criteria using Delphi. The weighting of criteria cannot be separated from the element of the decision maker's subjectivity; therefore, it is necessary to compromise between subjective and objective criteria. Therefore, the study used The Method of Removal Effects of Criteria (objective weighting of criteria) and Stepwise Weight Assessment Ratio Analysis (subjective weighting of criteria) in weighting criteria. Then, considering the weight of the criteria, the Proximity Index Value (PIV) is used to evaluate and rate the suppliers. The offered methodology is applied to a real case study from a leather manufacturing company in Indonesia to verify its applicability with a sensitivity analysis performed on different scenarios. The findings indicated that the proposed model is dependable and that the rankings are resilient to fluctuations in the criterion weights.