PROXİMİTY INDEX VALUE FOR SUPPLİER SELECTİON USİNG COMPROMİSE WEİGHTİNG OF ANALYTİCAL HİERARCHY PROCESS (AHP) AND MEREC: A CASE STUDY IN INDONESIAN LEATHER INDUSTRY
DOI:
https://doi.org/10.18623/rvd.v23.6542Keywords:
Supplier Selection, MEREC, AHP, PIV, DelphiAbstract
This study addresses supplier selection challenges by proposing a model that uses the Proximity Index Value (PIV) using compromise criteria weighting of the Analytical Hierarchy Process (AHP) and the Method Based on the Removal Effects of Criteria (MEREC). Delphi is applied in the proposed model on criteria selection, accommodating all objective and subjective criteria. The model was then tested practically at a leather company in Indonesia. Our model effectively captures the dynamics of decision-making groups in supplier ranking, emphasizing the importance of criteria selection in making better decisions. Notably, the robustness of our method is demonstrated by its insensitivity to parameter changes, ensuring efficient results.
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