The application of Factor Analysis (FA) in evaluating suppliers selection criteria in PT. Wijaya Karya Beton Tbk Indonesia and ranking suppliers using Technique for Order Preference by Similarity to Ideal Solutions (TOPSIS)

Abstract

The largest factories of the cocrete iron industry in Indonesia is PT. Wijaya Karya Beton Tbk. The company is faced with supplier selection problem. Each supplier has its own advantages and disadvantages, making it difficult for the company to choose the right supplier. There are many criteria that can be used in supplier selection. Based on previous research, all of the criteria are selected using factor analysis, to determine suitable criteria in the cocrete iron industry in Indonesia. Then after obtaining the criteria used, the supplier assessment is carried out using Technique for Order Preference by Similarity to Ideal Solutions (TOPSIS). The results showed that the use of factor analysis and TOPSIS methods can be used to select the right suppliers for the cocrete iron industry in Indonesia. Then there are 13 sub-criteria that are considered in selecting the right supplier at PT Wijaya Karya Beton Tbk. These sub-criteria are divided into four criteria. Azuma Co., Ltd. selected for the first best supplier and Mastex Inc. was ranked second.