SUPPLIER SELECTION AT THE RETAIL INDUSTRY USING THE ANALYTICAL HIERARCHY PROCESS (AHP) METHOD (CASE STUDY AT PT. XYZ LOMBOK WAREHOUSE BRANCH)
This study applies the Analytical Hierarchy Process (AHP) to develop a robust supplier selection framework for PT. XYZ's Lombok warehouse to address inventory instability caused by logistical complexities and inconsistent supplier performance. The core problem is the absence of a standardized supplier evaluation method at the Lombok branch, leading to significant out-of-stock incidents and unfulfilled orders that disrupt regional distribution. The study's novelty is its practical application of a data-integrated AHP model within a regional Indonesian retail network, uniquely incorporating real warehouse performance metrics and geospatial delivery risks. Using a quantitative, descriptive-analytical design, this research gathered primary data from expert questionnaires and secondary data from company records to build and validate the AHP model. The findings identified delivery consistency as the most critical evaluation criterion and produced a clear ranking of the optimal suppliers for cooking oil, UHT milk, and sugar. The study concludes that the AHP model provides an effective, objective, and data-driven solution to resolve the warehouse's inventory instability by replacing subjective assessments with a transparent decision-making framework. The findings are directly applicable through a developed Microsoft Excel dashboard that automates AHP calculations, enabling managers to continuously improve procurement strategy and enhance supply chain resilience.