Evaluation of Supplier Performance in Plastic Manufacturing Industry: A Case Study

Abstract

Abstract The supplier is an essential element in the production process because it supplies raw materials. In the supply chain, supplier performance evaluation is an essential factor. This evaluation is used to assess supplier performance in improving company performance. This study aims to evaluate supplier performance using the integration of the Analytical Hierarchy Process (AHP) and Standardized Unitless Rating (SUR) methods. AHP is proposed for the determination of criteria weights, and SUR is used to evaluate supplier performance. Criteria weights on AHP are used in the SUR method to evaluate supplier performance. A case study was carried out in the plastic manufacturing industry in Indonesia. The criteria used include Quality (Q), Cost (C), Delivery (D), Flexibility (F), Responsiveness (R), Warranty and claim policies (W), and Environmental management system (E). The results showed that cost is the most critical criterion in evaluating supplier performance. The results also showed that AHP and SUR were effectively used to evaluate supplier performance.