Proposed Selection of Palm Oil Raw Materials Supplier for Production of Crude Palm Oil Using Analytic Network Process (ANP) Method at Ukindo Blankahan Oil Mill Company

Abstract

PT. Ukindo Blankahan Oil Mill is a company engaged in the processing of Crude Palm Oil (CPO) and oil palm kernels. The problem that often occurred in the company was the lack of service from suppliers such as late delivery of raw materials and fruit quality which was still often not following company procedures, which resulted in not achieving CPO oil production targets. For this reason, it was necessary to propose the best supplier selection to re-evaluate the performance results and to maintain and improve the quality of palm oil raw materials in the company. The purposes of this study were to identify the main criteria to be used in selecting suppliers, to get the best supplier rankings to be maintained by the company using the Analytic Network Process (ANP) method. The criteria that would be used in the selection of suppliers at PT. Ukindo Blankahan Oil Mill had 5 criteria and 15 sub-criteria, namely quality criteria with sub-criteria of the desired standard composition, providing consistent quality, and level of defects. Price criteria with sub-criteria for payment methods, low prices, price stability, and convenience in determining price agreements. Delivery criteria with sub-criteria of delivery speed, the number of deliveries determination. Service criteria with sub-criteria provided guarantees for goods, assisting, and responsiveness. Environmental criteria with sub-criteria of delivery distance, road/terrain conditions, weather climate. The criteria had a weight value of 0.449, max value = 5.40, CI value = 0.102, and CR value = 0.091 while the sub-criteria had a weight value of 1.136, max value = 16,990, C1 value = 0.1421, and CR value = 0.089398. The selected supplier based on the assessment of decision making using the Analytical Network Process (ANP) method was CV. LANGKAT MAKMUR Supplier with a value of 0.056844.