Supply Chain Management of Outsourcing Module Components Decision-Making using Analytical Hierarchy Process and Visual Basic Application in Automotive Body-in-White Welding Assembly Line

Ahmad Fauzi Fudzin; ainul akmar mokhtar; M. Muhammad

doi:10.15282/ijame.19.3.2022.03.0763

Authors

F. Fudzin Department of Mechanical Engineering, Universiti Teknologi PETRONAS, Sri Iskandar, 32600 Perak, Malaysia. Phone: +60162337271
A.A. Mokhtar Department of Mechanical Engineering, Universiti Teknologi PETRONAS, Sri Iskandar, 32600 Perak, Malaysia. Phone: +60162337271
M. Muhammad Department of Mechanical Engineering, Universiti Teknologi PETRONAS, Sri Iskandar, 32600 Perak, Malaysia. Phone: +60162337271

DOI:

https://doi.org/10.15282/ijame.19.3.2022.03.0763

Keywords:

Analytical hierarchy process, Visual basic application, Supply chain management, Outsourcing module, Vendor selection

Abstract

Supply Chain Management (SCM) has gained the attention of business organizations as it affects corporate efficiency and competitive advantage. Component outsourcing is an important element of SCM practices and is considered to be a multi-criteria decision-making problem (MCDM) in vendor selection processes. However, decision-making on the selection of vendors is crucial, as the outsourcing program is influenced by multiple technical and commercial criteria of vendors. Developing an Excel-based Analytic Hierarchy Process (AHP) model for vendor selection therefore helps to simplify selection processes. In this paper, a Visual Basic Application (VBA) Excel-based AHP model was developed, which multiple criteria, sub-criteria and vendors and simultaneously compared with multiple main criteria, sub-criteria and alternatives for vendor selection. The model was validated with a case study of selecting a vendor for module components of body-in-white (BIW) in automotive industry as industrial application. As a result, vendor A is the best vendor since it has the highest overall score of 0.35206. Whereas vendor B is 0.239, vendor C is 0.126, vendor D is 0.146 and vendor E 0.135. In addition, the model is capable of resolving other MCDM problems. This paper provides resources such as AHP methodology, validating method and VBA code programming to readers in developing their own VBA Excel-based model.

Author Biography

A.A. Mokhtar, Department of Mechanical Engineering, Universiti Teknologi PETRONAS, Sri Iskandar, 32600 Perak, Malaysia. Phone: +60162337271

Ainul Akmar Mokhtar is an Associate Professor in Mechanical Engineering Department of Universiti Teknologi PETRONAS, Malaysia. She had been graduated in 1996 from Purdue University, USA and had obtained his postgraduate master degree from University of Nottingham, UK in 2001. She had been awarded with Ph.D. in Mechanical Engineering from Universiti Teknologi PETRONAS in 2011. Her specialization include Physical Asset Management, Reliability & Maintenance, and Operations Management.