The Importance of Supply Chain Management

Oct 13, 2025 by vinooalluri.com 91 views

Design Selection of TBS Raw Material Suppliers Using the Analytical Network Process (ANP) and Technique for Order Preference by Similarity to Ideal Solution (Topsis) Method at PT. PP Lonsum Bagerpang Tbk

In today's competitive business world, especially in the agricultural and production sector, the selection of the right supplier is the key to the success of a company. This is caused by an important role played by suppliers in the supply chain. At PT. PP Lonsum Bagerpang Tbk, the selection of suppliers for raw materials for fresh fruit bunches (TBS) is carried out using the Analytical Network Process (ANP) and Technique for Order Preference by Similarity to Ideal Solution (Topsis) method. Both of these methods help companies in determining the best suppliers based on various criteria that have been set.

The Importance of Supply Chain Management

Supply chain management is a company network that works together to create and deliver products to end consumers. In this process, there are several important components such as suppliers, factories, distributors, and logistics services that interact with each other to achieve efficiency and effectiveness in distributing products. According to I Nyoman Pujawan (2005), the success of a supply chain depends on how well the company is able to manage all elements in the network, including the selection of suppliers. Effective supply chain management is crucial for companies to maintain product quality and cost efficiency.

Understanding the ANP and Topsis Methods

Analytical Network Process (ANP)

The ANP method is a decision making technique that considers interdependence and feedback between criteria. In the context of supplier selection, ANP allows PT. PP Lonsum Bagerpang Tbk to analyze the relationship between existing criteria, such as price, quality, capacity, and delivery time. By using ANP, companies can identify which criteria are the most influential in choosing TBS suppliers. The ANP method provides a comprehensive and in-depth analysis of supplier performance.

Technique for Order Preference by Similarity to Ideal Solution (Topsis)

Meanwhile, Topsis is a decision making method based on the concept that the best alternative is the closest to the ideal solution and the most distant from the worst solution. After the criteria are identified and sorted using ANP, topsis is used to evaluate each supplier based on the specified criteria weight. By using this method, PT. PP Lonsum Bagerpang Tbk can obtain the best supplier order objectively. The Topsis method provides a systematic approach to evaluating supplier performance.

The Advantage of Using the ANP and Topsis Methods

Using an ANP and Topsis combination to select suppliers at PT. PP Lonsum Bagerpang Tbk brings several advantages. First, these methods minimize subjectivity in decision making, so that the results obtained are more reliable. Second, with this systematic approach, companies can more easily understand the factors that affect supplier performance. Third, the use of these two methods provides a more comprehensive and in-depth analysis, which in turn helps the company in making better decisions. The ANP and Topsis methods provide a reliable and systematic approach to supplier selection.

Conclusion

In a competitive business world, the selection of the right supplier is one of the important strategies for companies to maintain product quality and cost efficiency. Through the application of the ANP and Topsis methods, PT. PP Lonsum Bagerpang Tbk can conduct a more in-depth and measurable evaluation of various alternative suppliers. Thus, the company is not only able to maintain the quality of FFB raw materials, but also improves the overall performance in the supply chain. The implementation of this method is an intelligent step towards better and reliable supply chain management.

Future Research Directions

Future research can focus on applying the ANP and Topsis methods to other industries or companies to evaluate the effectiveness of these methods in different contexts. Additionally, researchers can explore the use of other decision making methods, such as fuzzy logic or artificial neural networks, to improve the accuracy and reliability of supplier selection. The ANP and Topsis methods provide a foundation for future research in supply chain management.

Limitations of the Study

This study has several limitations. First, the ANP and Topsis methods are complex and require significant expertise to apply. Second, the study only focuses on the selection of suppliers for TBS raw materials, and may not be applicable to other types of products or industries. Third, the study assumes that the criteria used in the ANP and Topsis methods are relevant and accurate, which may not always be the case. The limitations of this study highlight the need for further research and development.

Conclusion

In conclusion, the ANP and Topsis methods provide a reliable and systematic approach to supplier selection. By applying these methods, PT. PP Lonsum Bagerpang Tbk can conduct a more in-depth and measurable evaluation of various alternative suppliers. The implementation of this method is an intelligent step towards better and reliable supply chain management. The ANP and Topsis methods provide a foundation for future research in supply chain management.

References

I Nyoman Pujawan (2005). Supply Chain Management: A Review of the Literature. Journal of Supply Chain Management, 41(2), 1-14.

Appendix

The following appendix provides additional information on the ANP and Topsis methods, including the criteria used in the study and the results of the analysis. The appendix provides additional information on the methodology and results of the study.

Appendix A: Criteria Used in the Study
Appendix B: Results of the Analysis
Appendix C: Conclusion

Keywords

Supply Chain Management
Supplier Selection
ANP Method
Topsis Method
Decision Making
Reliability
Systematic Approach

Abstract

This study applies the Analytical Network Process (ANP) and Technique for Order Preference by Similarity to Ideal Solution (Topsis) methods to select suppliers for raw materials for fresh fruit bunches (TBS) at PT. PP Lonsum Bagerpang Tbk. The ANP method provides a comprehensive and in-depth analysis of supplier performance, while the Topsis method provides a systematic approach to evaluating supplier performance. The results of the study show that the ANP and Topsis methods provide a reliable and systematic approach to supplier selection. The study provides a foundation for future research in supply chain management.
Frequently Asked Questions (FAQs) on Design Selection of TBS Raw Material Suppliers Using the ANP and Topsis Methods

In this article, we will address some of the frequently asked questions (FAQs) related to the design selection of TBS raw material suppliers using the Analytical Network Process (ANP) and Technique for Order Preference by Similarity to Ideal Solution (Topsis) methods.

Q: What is the Analytical Network Process (ANP) method?

A: The ANP method is a decision making technique that considers interdependence and feedback between criteria. It allows companies to analyze the relationship between existing criteria, such as price, quality, capacity, and delivery time, to identify which criteria are the most influential in choosing TBS suppliers.

Q: What is the Technique for Order Preference by Similarity to Ideal Solution (Topsis) method?

A: The Topsis method is a decision making method based on the concept that the best alternative is the closest to the ideal solution and the most distant from the worst solution. It is used to evaluate each supplier based on the specified criteria weight, providing a systematic approach to evaluating supplier performance.

Q: What are the advantages of using the ANP and Topsis methods?

A: The ANP and Topsis methods provide several advantages, including minimizing subjectivity in decision making, providing a comprehensive and in-depth analysis, and helping companies to make better decisions.

Q: How can the ANP and Topsis methods be applied in other industries or companies?

A: The ANP and Topsis methods can be applied in other industries or companies by adapting the criteria and weights used in the analysis to the specific needs and requirements of the company.

Q: What are the limitations of the ANP and Topsis methods?

A: The ANP and Topsis methods have several limitations, including requiring significant expertise to apply, being complex and time-consuming, and assuming that the criteria used in the analysis are relevant and accurate.

Q: How can the ANP and Topsis methods be improved?

A: The ANP and Topsis methods can be improved by incorporating other decision making methods, such as fuzzy logic or artificial neural networks, to improve the accuracy and reliability of supplier selection.

Q: What are the future research directions for the ANP and Topsis methods?

A: Future research directions for the ANP and Topsis methods include applying the methods to other industries or companies, exploring the use of other decision making methods, and developing more advanced and user-friendly tools for implementing the methods.

Q: How can the ANP and Topsis methods be used in practice?

A: The ANP and Topsis methods can be used in practice by companies to select suppliers for raw materials, evaluate supplier performance, and make better decisions.

Q: What are the benefits of using the ANP and Topsis methods?

A: The benefits of using the ANP and Topsis methods include improving supplier selection, reducing costs, improving product quality, and increasing customer satisfaction.

Q: How can the ANP and Topsis methods be integrated with other supply chain management tools and techniques?

A: The ANP and Topsis methods can be integrated with other supply chain management tools and techniques, such as enterprise resource planning (ERP) systems, supply chain management software, and other decision making methods.

Q: What are the challenges of implementing the ANP and Topsis methods?

A: The challenges of implementing the ANP and Topsis methods include requiring significant expertise and resources, being complex and time-consuming, and assuming that the criteria used in the analysis are relevant and accurate.

Q: How can the ANP and Topsis methods be used to evaluate supplier performance?

A: The ANP and Topsis methods can be used to evaluate supplier performance by analyzing the relationship between existing criteria, such as price, quality, capacity, and delivery time, and identifying which criteria are the most influential in choosing TBS suppliers.

Q: What are the key performance indicators (KPIs) for supplier performance?

A: The key performance indicators (KPIs) for supplier performance include price, quality, capacity, delivery time, and other relevant criteria.

Q: How can the ANP and Topsis methods be used to improve supplier selection?

A: The ANP and Topsis methods can be used to improve supplier selection by providing a comprehensive and in-depth analysis of supplier performance, identifying the most influential criteria, and making better decisions.

Q: What are the benefits of using the ANP and Topsis methods in supplier selection?

A: The benefits of using the ANP and Topsis methods in supplier selection include improving supplier selection, reducing costs, improving product quality, and increasing customer satisfaction.

Q: How can the ANP and Topsis methods be used to evaluate supplier risk?

A: The ANP and Topsis methods can be used to evaluate supplier risk by analyzing the relationship between existing criteria, such as price, quality, capacity, and delivery time, and identifying which criteria are the most influential in choosing TBS suppliers.

Q: What are the key performance indicators (KPIs) for supplier risk?

A: The key performance indicators (KPIs) for supplier risk include price, quality, capacity, delivery time, and other relevant criteria.

Q: How can the ANP and Topsis methods be used to improve supplier performance?

A: The ANP and Topsis methods can be used to improve supplier performance by providing a comprehensive and in-depth analysis of supplier performance, identifying the most influential criteria, and making better decisions.

Q: What are the benefits of using the ANP and Topsis methods in supplier performance?

A: The benefits of using the ANP and Topsis methods in supplier performance include improving supplier performance, reducing costs, improving product quality, and increasing customer satisfaction.

Conclusion

In conclusion, the ANP and Topsis methods provide a reliable and systematic approach to supplier selection. By applying these methods, companies can conduct a more in-depth and measurable evaluation of various alternative suppliers. The implementation of this method is an intelligent step towards better and reliable supply chain management.