MCDM-AHP and PROMETHEE methods integrated for base service strategy vendor evaluation and selection

Abstract

Business competition is very important in controlling product-savvy customers. Strong basic service techniques will be the main factor that binds vendors as the final destination in the supply chain through the strength of business network processes. This research aims to create a strategic basis for evaluating and selecting vendors through the integration process services of the multi-criteria decision-making method analytic hierarchy process (MCDM-AHP) and preference ranking organization method for enrichment evaluation (PROMETHEE) methods. Empirical studies show how this approach can provide optimal decision support for the vendor evaluation and selection process. Eight different types of criteria are required in its apps and must be realized as a barometer of the strategic basis for selecting vendors so that business processes are of high quality. These criteria include quality of goods, payment methods, payment terms, minimum transactions, discounts, delivery times, inventory, and service. The optimal weight for each criterion will be determined based on its importance to the synthesis process and its feasibility tested using mathematical algebra matrices and expert choice apps. Decision-making was based on the results of ranking evaluation of selected vendors through the development of 342 preference matrices, ten vendors were deemed worthy of acceptance and nine other vendors were rejected.