OPTIMIZE SUPPLIER SELECTION FOR PROCESSED CHICKEN RAW MATERIALS IN FROZEN FOOD INDUSTRY USING THE ANALYTIC HIERARCHY PROCESS: A CASE STUDY OF XYZ
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Abstract
This research aims to determine the relative weights of key decision criteria and prioritize alternative suppliers for processed chicken parts in a case study of XYZ Company. The organization currently lacks a systematic evaluation system for processed chicken suppliers, leading to uncertainties in quality and raw material costs. To address this, The Analytic Hierarchy Process (AHP) was applied in conjunction with the expert judgments of five key informants within the organization. The evaluation of five main criteria revealed that product quality holds the highest priority weight (0.462), accounting for nearly half of the total decision weight and being twice as important as price (0.216), which ranked second. Meanwhile, delivery, reliability, and service exhibited comparatively similar levels of importance in the subsequent rankings, the results indicated that Supplier A is the most strategically optimal alternative, achieving the highest composite weight of 0.561, followed by Supplier B (0.276) and Supplier C (0.163). The findings of this study provide the case company with a standard decision-making tool for procurement, that reduces operational risks, but also offer a scalable model adaptable for the procurement of other raw materials to ensure long-term efficiency.
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