Suppliers Selection Model Using Fuzzy Principal Component Analysis

Abstract

Selection Supplier is Multi Criteria Decision Problem (MCDP) which is one of the main key in maximizing the total value for sustainable company. The study present at the construction company Indonesia. The product of construction company is box culvert . This study models the integration of fuzzy method and Principal Component Analysis (PCA). The objective of the research is to determine the best model of suppliers selection on based five criteria’s such as quality, performance, flexibility, relationship and cost. Fuzzy method is used to deal the vagueness of subjective judgements and finding criteria weight and then PCA utilize data reducing, eliminating multicollinearity among them and ranks suppliers. The suppliers of cement, gravels 10/20, gravels 5/10, sands and iron are considered in this study. For solving the problem, this study uses software statistiXL. The results show that the suppliers can be classified based on Principle Components (PCs). The best suppliers for PC1 is sands (s9, score 0.890, criietria C), PC2 is gravels 10/20 (s7, score 0.634 criietria R). The first two PC(z1 and z2) are PC1= 0.131Q+0.218F+0.758P+0.821R+0.914CdanPC2=(-0.931)Q-0.043F-0.382P+ .304R+0.188C