Abstract:
The objective of this research is to apply the variety of consisderation principles for an assessment and selection of suppliers to supply the machine parts. The problems of the current purchasing process, which only orders from the Headquarter in Japan, are delayed on the purchasing, higher cost, and Quality Control problem. To solve such problems, Purchasing Department has set the team for selection of new local suppliers utilizing Analytic Hierarchy Process principles for consisderation of the best supplier selection.The team set criteria for supplier selection by focusing on an achievement of Quality as the first objective, followed by reliability of the organization, price, answering ability of the questionnaires, packaging and delivery timeline respectively. These have led the company to select the most qualified suppliers, reduce the impact of cost and consequently, the overall cost is decreased while the level of quality and service prvided by the selected suppliers have improved.