Developing a Hybrid Method of Analytical Hierarchy Process and Additive Ratio Assessment for Ranking Suppliers: A Case Study of an Indonesian Concrete Manufacturing Company

Indonesia is developing its infrastructure to remain competitive in the global market, focusing on projects such as the construction of toll roads and bridges, which require large volumes of precast concrete products. Accordingly, it is important to focus on the quality of suppliers so that the products meet the requirements of companies and consumers. This case study aimed to develop a proposed model for ranking suppliers, employing the Additive Ratio Assessment and Analytical Hierarchy Process. Furthermore, it examined the practical application of the proposed model in an Indonesian concrete manufacturing company. The Delphi method was employed to enhance decision-making in criteria selection, considering that it determines the reliability of the supplier ranking. The study demonstrated that the proposed method yielded a practical solution and was not sensitive to parameter changes. Sensitivity analysis can help decision-makers evaluate the resilience of the process by determining the effect of change in the primary criteria on supplier ranking. Therefore, establishing a straightforward methodology enables managers in the concrete industry to identify the most suitable supplier. Additionally, this approach assists managers in categorizing intricate decision-making challenges into straightforward methodologies. The study provides managers in the Indonesian concrete industry with a thorough understanding of the variables that must be assessed when selecting suppliers.