Correlation Test Application of Supplier’s Ranking Using TOPSIS and AHP-TOPSIS Method

The supplier selection process can be done using multi-criteria decision making (MCDM) methods in firms. There are many MCDM Methods, but firms must choose the method suitable with the firm condition. Company A has analyzed supplier’s ranking using TOPSIS method. TOPSIS method has a marjor weakness...

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Main Author: Ika Yuniwati
Format: Article
Language:English
Published: Mathematics Department UIN Maulana Malik Ibrahim Malang 2016-05-01
Series:Cauchy: Jurnal Matematika Murni dan Aplikasi
Subjects:
Online Access:https://ejournal.uin-malang.ac.id/index.php/Math/article/view/3489
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author Ika Yuniwati
author_facet Ika Yuniwati
author_sort Ika Yuniwati
collection DOAJ
description The supplier selection process can be done using multi-criteria decision making (MCDM) methods in firms. There are many MCDM Methods, but firms must choose the method suitable with the firm condition. Company A has analyzed supplier’s ranking using TOPSIS method. TOPSIS method has a marjor weakness in its subjective weighting. This flaw is overcome using AHP method weighting having undergone a consistency test. In this study, the comparison of supplier’s ranking using TOPSIS and AHP-TOPSIS method used correlation test. The aim of this paper is to determine different result from two methods. Data in suppliers’ ranking is ordinal data, so this process used Spearman’s rank and Kendall’s tau b correlation. If most of the ranked scored are same, Kendall’s tau b correlation should be used. The other way, Spearman rank should be used. The result of this study is that most of the ranked scored are different, so the process used Spearman rank p-value of Spearman’s rank correlation of 0.505. It is greater than 0.05, means there is no statistically significant correlation between two methods. Furthermore, increment or decrement of supplier’s ranking in one method is not significantly related to the increment or decrement of supplier’s ranking in the second method
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spelling doaj.art-2afafa396acd4849a4a09cf34321d6a42022-12-22T03:26:32ZengMathematics Department UIN Maulana Malik Ibrahim MalangCauchy: Jurnal Matematika Murni dan Aplikasi2086-03822477-33442016-05-0142657310.18860/ca.v4i2.34893008Correlation Test Application of Supplier’s Ranking Using TOPSIS and AHP-TOPSIS MethodIka Yuniwati0Postgraduate Statistics Program, Brawijaya University, MalangThe supplier selection process can be done using multi-criteria decision making (MCDM) methods in firms. There are many MCDM Methods, but firms must choose the method suitable with the firm condition. Company A has analyzed supplier’s ranking using TOPSIS method. TOPSIS method has a marjor weakness in its subjective weighting. This flaw is overcome using AHP method weighting having undergone a consistency test. In this study, the comparison of supplier’s ranking using TOPSIS and AHP-TOPSIS method used correlation test. The aim of this paper is to determine different result from two methods. Data in suppliers’ ranking is ordinal data, so this process used Spearman’s rank and Kendall’s tau b correlation. If most of the ranked scored are same, Kendall’s tau b correlation should be used. The other way, Spearman rank should be used. The result of this study is that most of the ranked scored are different, so the process used Spearman rank p-value of Spearman’s rank correlation of 0.505. It is greater than 0.05, means there is no statistically significant correlation between two methods. Furthermore, increment or decrement of supplier’s ranking in one method is not significantly related to the increment or decrement of supplier’s ranking in the second methodhttps://ejournal.uin-malang.ac.id/index.php/Math/article/view/3489supplier’s rankingtopsis methodahp-topsis methodand correlation test
spellingShingle Ika Yuniwati
Correlation Test Application of Supplier’s Ranking Using TOPSIS and AHP-TOPSIS Method
Cauchy: Jurnal Matematika Murni dan Aplikasi
supplier’s ranking
topsis method
ahp-topsis method
and correlation test
title Correlation Test Application of Supplier’s Ranking Using TOPSIS and AHP-TOPSIS Method
title_full Correlation Test Application of Supplier’s Ranking Using TOPSIS and AHP-TOPSIS Method
title_fullStr Correlation Test Application of Supplier’s Ranking Using TOPSIS and AHP-TOPSIS Method
title_full_unstemmed Correlation Test Application of Supplier’s Ranking Using TOPSIS and AHP-TOPSIS Method
title_short Correlation Test Application of Supplier’s Ranking Using TOPSIS and AHP-TOPSIS Method
title_sort correlation test application of supplier s ranking using topsis and ahp topsis method
topic supplier’s ranking
topsis method
ahp-topsis method
and correlation test
url https://ejournal.uin-malang.ac.id/index.php/Math/article/view/3489
work_keys_str_mv AT ikayuniwati correlationtestapplicationofsuppliersrankingusingtopsisandahptopsismethod