Supplier Selection Analysis Using Minmax Multi Choice Goal Programming Model CAUCHY – Jurnal Matematika Murni dan Aplikasi Volume 7(1) (2021), Pages 97-104 p-ISSN: 2086-0382; e-ISSN: 2477-3344 Submitted: July 16, 2021 Reviewed: September 02, 2021 Accepted: November 01, 2021 DOI: https://doi.org/10.18860/ca.v7i1.12944 Supplier Selection Analysis Using Minmax Multi Choice Goal Programming Model Novi Rustiana Dewi1, Eka Susanti2, Bambang Suprihatin3, Endro Setyo Cahyono4, Anggun Permata5, Nurul Fadhila Yanita6 1,2,3,4,5,6 Department of Mathematics, Universitas Sriwijaya Email: novirustiana@unsri.ac.id, eka_susanti@mipa.unsri.ac.id, endrosetyo_c@yahoo.co.id, bambangs@unsri.ac.id ABSTRACT Production control, inventory and distribution is an important factor in trading activities. These three factors are discussed in a system called Supply Chain Management (SCM). Procurement of goods from a company or trading business related to suppliers. In some cases, there are several suppliers that can be assessed by considering certain factors. In certain cases, the data from several factors that are considered are uncertainty, so the fuzzy approach can be used. The MINMAX Multi Choice Goal Programming model can be used to solve fuzzy supplier selection problems with linear membership function. It can be applied to selecting supplier of Brastagi Oranges. There are four suppliers, namely Jaya, Mako, Baros. Gina. There are three factor to consider, cost, quality and delivery. The decision maker selects the best supplier for ordering 17000 kg Brastagi oranges. The results, the best supplier is Gina with an order quantity of 10000 kg and Mako with a total order of 7000 kg. Keywords: fuzzy; MINMAX multi choice goal programming; supply chain management; supplier selection INTRODUCTION Supply chain management has three main components, namely the process of obtaining suppliers of raw materials, the process of changing raw materials into finished products and the product distribution process. The first stage in the supply chain is supplier selection. Selection of suppliers aims to get products with good quality and competitive prices. Supplier selection is related to the process of procuring goods to meet customer demands. price and quality, time of delivery is a consideration in supplier’s selection, especially for perishable products. Fruit is a type of product that does not last long if not stored in the refrigerator. Research related to supply chains with application in various fields and solutions have been carried out with several approaches. The application of fuzzy TOPSIS in supplier selection was introduced by [1]. The fuzzy approach is also used by [2] in the selection of suppliers in manufacturing companies. The application of the supply chain concept to inventory control and supplier selection for planning new product production in several planning horizons was carried out by [3]. Discussion of supply chain problems https://doi.org/10.18860/ca.v7i1.12944 mailto:novirustiana@unsri.ac.id mailto:eka_susanti@mipa.unsri.ac.id mailto:endrosetyo_c@yahoo.co.id mailto:bambangs@unsri.ac.id Supplier Selection Analysis Using Minmax Multi Choice Goal Programming Model Novi Rustiana Dewi 98 by considering price, supply and demand factors is carried out by [4] and an efficient Lagrangian relaxation algorithm is proposed to solve the model. A discussion of bioethanol supply chain network problems with a robust approach was introduced [5]. A deterministic approach to solving the supply chain problem of food product distribution is discussed by [6]. The application of the mix integer programming model to the distribution and supply chain problems of liquid helium is given by [7]. The research of the [8] is combines the concepts of siting, inventory and routing in the supply chain. There are two main studies related to the supplier selection model to be used, namely the concept of fuzzy and fuzzy goal programming. The Goal Programming (GP) model is used in problems with several objectives to be achieved simultaneously. The GP model with fuzzy numbers is called the Fuzzy Goal Programming (FGP) model. The concept of FGP with random variables was introduced by [9]. Fuzzy and probabilistic approaches to the FGP model are discussed by [10]. Completion of the FGP model with a genetic algorithm is discussed by [11]. Research [12] uses a multi-choice goal programming model to determine energy renewal facilities. [13] used the FGP model in production planning. The choice of waste transportation mode using the FGP model was introduced by [14]. The application of the Weighted Goal Programming model in the urban planning process is given by [15]. The application of the GP model in capital management is given by [16]. The use of the FGP model in transportation problems with several modes of transportation is given by [17]. The research that has been mentioned is the implementation of the supply chain concept to supplier, inventory and distribution components. This research will discuss the problem of selecting suppliers of Brastagi oranges using MINMAX Multi Choice Goal Programming models (Minmax MCGP). The research focus is on component suppliers. This research is a basic research by developing the MINMAX Multi Choice Goal Programming introduced by [2]. In [2], the fuzzy number used is the trapezoid fuzzy number by considering the factors of price, quality and technology offered. In this study, price, quality and time of delivery are considering. Linear membership function is used to define these tree factor. METHODS The steps for completing the supplier selection using the MINMAX MCGP method are: 1. Data Collection and Description The data used in this study is primary, consist of data on the purchase with the parameters of cost, quality and delivery. The data collection period is from 18 February to 18 March 2020. 2. Determine the fuzzy triangular membership value for the goal of price, quality and delivery. Following are given fuzzy membership functions for the respective three goals, in order of price, quality and timeliness of delivery which are formulated based on the data in step 1. The restriction value of variable 𝑐, π‘˜, 𝑑 is determined based on the data in step 1. πœ‡(𝑐) = { 1, 𝑐 ≀ 7800 1 βˆ’ [ (πΆβˆ’π‘†πΏ1(𝑐)) 𝑆𝐿2(𝑐)βˆ’π‘†πΏ1(𝑐) ] , 7800 ≀ 𝑐 ≀ 10000 0, 𝑐 β‰₯ 10000 (1) Supplier Selection Analysis Using Minmax Multi Choice Goal Programming Model Novi Rustiana Dewi 99 πœ‡(π‘˜) = { 1, π‘˜ β‰₯ 100. π‘˜ 𝑆𝐿2(π‘˜) , 0 < π‘˜ ≀ 100. 0, π‘˜ ≀ 0. (2) πœ‡(𝑑) = { 1, 𝑑 β‰₯ 100. 𝑑 𝑆𝐿2(𝑑) , 0 < 𝑑 ≀ 100. 0, 𝑑 ≀ 0. (3) Where πœ‡(𝑐) is the membership function for the cost. πœ‡(π‘˜) is the membership function for the quality. πœ‡(𝑑) is membership function for delivery π‘˜ is the percentage of average supplier quality. 𝑆𝐿1(𝑐) is Satisfaction Level lower bound for the unit cost. 𝑆𝐿2(𝑐) is Satisfaction Level upper bound for the unit cost. 𝑆𝐿2(π‘˜) is Satisfaction Level upper bound for the unit quality. 𝑆𝐿2(𝑑)is Satisfaction Level upper bound for the unit delivery. 3. The MINMAX MCGP model formulation based on the membership function values defined in Step 2. The following is the MINMAX MCGP model introduced by [2]. Min 𝐷 Subject to 𝐷 β‰₯ 𝛼𝑖 𝑑𝑖 + + 𝛽𝑖 𝑑𝑖 βˆ’, 𝑖 = 1,2, … π‘š, 𝐷 β‰₯ 𝛿𝑖 (𝑒𝑖 + + 𝑒𝑖 βˆ’), 𝑖 = 1,2, … π‘š, (4) πœ‡(π‘₯𝑖 ) βˆ’ 𝑑𝑖 + + 𝑑𝑖 βˆ’ = 𝑦𝑖 , 𝑖 = 1,2, … π‘š, 𝑦𝑖 βˆ’ 𝑒𝑖 + + 𝑒𝑖 βˆ’ = 𝑔𝑖,π‘šπ‘Žπ‘₯ , 𝑖 = 1,2, … , π‘š, 𝑔𝑖,π‘šπ‘–π‘› ≀ 𝑦𝑖 ≀ 𝑔𝑖,π‘šπ‘Žπ‘₯ , 𝑖 = 1,2, … , π‘š, 𝑑𝑖 +, 𝑑𝑖 βˆ’, 𝑒𝑖 +, 𝑒𝑖 βˆ’ β‰₯ 0, 𝑖 = 1,2, … , π‘š, where 𝐷 : the deviation variable of the objective function 𝛼𝑖 and 𝛽𝑖 : weight of the positive deviation penalty in the objective function 𝑑𝑖 + and 𝑑𝑖 βˆ’ : positive and negative deviation of the objective function 𝛿𝑖 : the sum of the deviation in the objective function 𝑒𝑖 + and 𝑒𝑖 βˆ’ : positive and negative deviation on |𝑦𝑖 βˆ’ 𝑔𝑖,π‘šπ‘Žπ‘₯ |. 𝑦𝑖 : continuous variable with a range of interval value 𝑔𝑖,π‘šπ‘–π‘› and 𝑔𝑖,π‘šπ‘Žπ‘₯ : minimum and maximum 𝑦𝑖 value πœ‡(π‘₯𝑖 ) : membership function for the supplier to i 4. Completion of the model obtained in step (4) uses Lingo 13.0 software 5. Analyses and conclusion Supplier Selection Analysis Using Minmax Multi Choice Goal Programming Model Novi Rustiana Dewi 100 RESULTS AND DISCUSSION This research discusses supplier selection problem of citrus fruits for the type of Brastagi oranges. The data used are primary data with a data collection period of 30 ordering periods. The research was conducted at a fruit shop in Palembang . The following is given the research data. Table 1. Ordering the Data for Each Supplier No Supplie r Name Ordering delivery On time deliv ery Price offered Prece ntage of qualit y (%) Date Month Date Month Cost (@kg) Total 1 Jaya 21 Feb 21 Feb √ - 8500 45900000 80 2 Mako 21 Feb 21 Feb √ - 8000 43200000 85 3 Baros 22 Feb 24 Feb - √ 8500 45900000 80 4 Gina 22 Feb 22 Feb √ - 9000 48600000 95 5 Jaya 23 Feb 23 Feb √ - 8500 45900000 85 6 Mako 24 Feb 24 Feb √ - 8500 45900000 90 7 Baros 25 Feb 25 Feb √ - 8000 43200000 80 8 Mako 25 Feb 25 Feb √ - 9000 48600000 90 9 Gina 26 Feb 26 Feb √ - 9000 48600000 90 10 Mako 27 Feb 28 Feb - √ 8000 43200000 85 11 Jaya 27 Feb 27 Feb √ - 8500 45900000 85 12 Baros 28 Feb 28 Feb √ - 8000 43200000 85 13 Mako 29 Feb 1 Maret - √ 9000 48600000 85 14 Gina 29 Feb 29 Feb √ - 9500 51300000 90 15 Jaya 1 Maret 2 Maret - √ 8500 45900000 85 16 Mako 1 Maret 1 Maret √ - 9000 48600000 95 17 Baros 2 Maret 2 Maret √ - 9000 48600000 80 18 Mako 3 Maret 3 Maret √ - 9000 48600000 85 19 Gina 4 Maret 4 Maret √ - 9500 51300000 85 20 Jaya 5 Maret 6 Maret - √ 9000 48600000 85 21 Baros 5 Maret 5 Maret √ - 9000 48600000 80 22 Mako 6 Maret 6 Maret √ - 9000 48600000 90 23 Gina 7 Maret 7 Maret √ - 9500 51300000 95 24 Jaya 8 Maret 10 Maret - √ 9000 48600000 80 25 Baros 8 Maret 8 Maret √ - 9000 48600000 85 26 Gina 9 Maret 9 Maret √ - 9500 51300000 95 27 Mako 9 Maret 9 Maret √ - 9000 48600000 90 28 Jaya 10 Maret 12 Maret - √ 8500 45900000 85 29 Baros 10 Maret 10 Maret √ - 9000 48600000 80 30 Gina 11 Maret 11 Maret √ - 9500 51300000 85 31 Jaya 12 Maret 13 Maret - √ 9000 48600000 80 32 Mako 13 Maret 13 Maret √ - 9000 48600000 85 33 Jaya 13 Maret 14 Maret - √ 9000 48600000 90 Supplier Selection Analysis Using Minmax Multi Choice Goal Programming Model Novi Rustiana Dewi 101 34 Gina 14 Maret 14 Maret √ - 9500 51300000 90 35 Baros 15 Maret 16 Maret - √ 8500 45900000 85 36 Mako 15 Maret 15 Maret √ - 9000 48600000 90 37 Gina 16 Maret 16 Maret √ - 9500 51300000 90 38 Jaya 16 Maret 18 Maret - √ 8500 45900000 85 39 Mako 17 Maret 17 Maret √ - 9000 48600000 90 40 Gina 19 Maret 18 Maret - √ 9000 48600000 95 41 Baros 19 Maret 19 Maret √ - 8500 45900000 90 42 Jaya 19 Maret 20 Maret - √ 8500 45900000 80 43 Mako 19 Maret 21 Maret - √ 8500 45900000 80 44 Gina 20 Maret 20 Maret √ - 9000 48600000 90 45 Jaya 20 Maret 22 Maret - √ 8000 43200000 80 46 Baros 21 Maret 21 Maret √ - 8500 45900000 90 47 Mako 21 Maret 22 Maret - √ 8500 45900000 85 (Source : PD Wibowo, 21 februari until Maret 2020) Table 1 can determine the percentage of on-time delivery, the variable price offered, and the varying percentage of quality citrus in good condition with the total of all oranges sent by the supplier. The price value of each supplier is obtained by adding up each price in purchases divided by the number of investments, determined the average value for each data cost, quality, and timeliness. The calculation results are given in Table 2 below. Table 2. Value Percentage Criteria from Four Suppliers Supplier π’™π’Š Cost (Rp) Quality (%) Delivery (%) Total Order (kg) Jaya π’™πŸ 8625 83,33 25,00 64800 Mako π’™πŸ 8750 87,50 71,43 75600 Baros π’™πŸ‘ 8600 83,50 80,00 54000 Gina π’™πŸ’ 9318 90,91 90,91 59400 Determined the degree of membership for the level of satisfaction of the Decision Maker (DM) of each goal using (1), (2), (3). The calculation results are given in Table 3 below: Table 3. Degree of Membership for DM Satisfaction Level of Each Goal Decision Lowest Highest 𝒄: Cost > 10000 8465.4 8243.6 8021.8 7800 SL(c), Satisfaction Level c 0 0,7 0,8 0,9 1 π’Œ : Kualitas 0 40 60 80 100 SL(k), Satisfaction Level k 0 0,4 0,6 0,8 1 𝒅 : Ketepatan Waktu 0 40 60 80 100 SL(d), Satisfaction Level d 0 0,4 0,6 0,8 1 The value of the level of satisfaction is in the interval [0,1]. Based on Table 3, it is known that for the lowest decision value, DM gives a satisfaction level value of 0. For the highest decision value, DM gives a satisfaction level value 1. The level of satisfaction for each goal of cost, quality, and time delivery is determined based on equations (1), (2), and (3). The results are given in Table 4 below. Supplier Selection Analysis Using Minmax Multi Choice Goal Programming Model Novi Rustiana Dewi 102 Table 4. Membership Function Value for Each Goal Supplier Amount Of Order Cost Quality Delivery Jaya π’™πŸ 0,625 0,83 0,25 Mako π’™πŸ 0,568 0,88 0,71 Baros π’™πŸ‘ 0,636 0,84 0,8 Gina π’™πŸ’ 0,31 0,91 0,91 Average 0,53 0,865 0,6675 Maximum Value 0,636 0,91 0,91 The lower bound for the price goal is determined based on the average price value multiplied by the minimum order. The upper price is the product of the maximum value of the price times the maximum order. The same calculation is done for quality goals and on time delivery. We obtained a lower bound and an upper bound for the goal value of price, quality and on time delivery respectively 28876,5; 48081,6; 49013,2; 70308; 36045; 68796. The formulation of the MINMAX MCGP model (4) the problem of supplier’s selection of Brastagi Oranges with a maximum order quantity for each supplier of 10000 kg, minimum order of 15000 kg and a maximum of 17000 kg is given as follows. Minimum D Subject to 𝐷 β‰₯ 3𝑑1 + + 𝑑1 βˆ’ 𝐷 β‰₯ 𝑒1 + + 𝑒1 βˆ’ ; 𝐷 β‰₯ 𝑑2 + + 5𝑑2 βˆ’ 𝐷 β‰₯ 𝑒2 + + 𝑒2 βˆ’; 𝐷 β‰₯ 𝑑3 + + 3𝑑3 βˆ’ ; 𝐷 β‰₯ 𝑒3 + + 𝑒3 βˆ’ (5) 0,625π‘₯1 + 0,568π‘₯2 + 0,636π‘₯3 + 0,31π‘₯4 βˆ’ 𝑑1 + + 𝑑1 βˆ’ = 𝑦1 𝑦1 βˆ’ 𝑒1 + + 𝑒1 βˆ’ = 48081,6 28876,5 ≀ 𝑦1 ≀ 48081,6 0,83π‘₯1 + 0,88π‘₯2 + 0,84π‘₯3 + 0,91π‘₯4 βˆ’ 𝑑2 + + 𝑑2 βˆ’ = 𝑦2 𝑦2 βˆ’ 𝑒2 + + 𝑒2 βˆ’ = 70308 49013,2 ≀ 𝑦2 ≀ 70308 0,25π‘₯1 + 0,71π‘₯2 + 0,8π‘₯3 + 0,91π‘₯4 βˆ’ 𝑑3 + + 𝑑3 βˆ’ = 𝑦3 𝑦3 βˆ’ 𝑒3 + + 𝑒3 βˆ’ = 68796 36045 ≀ 𝑦3 ≀ 68796 π‘₯1 ≀ 10000; π‘₯2 ≀ 10000 ; π‘₯3 ≀ 10000 ; π‘₯4 ≀ 10000 π‘₯1 + π‘₯2 + π‘₯3 + π‘₯4 β‰₯ 15000 ; π‘₯1 + π‘₯2 + π‘₯3 + π‘₯4 ≀ 17000 𝑑1 +, 𝑑1 βˆ’, 𝑒1 +, 𝑒1 βˆ’, 𝑦1, 𝑦2, 𝑦3 β‰₯ 0 Solving the linear model (5) uses LINGO 13 software and the solution is obtained in Table 5 below. Supplier Selection Analysis Using Minmax Multi Choice Goal Programming Model Novi Rustiana Dewi 103 Table 5. MINMAX MCGP Model Solution for Citrus Fruit Supplier Selection No Variable Value 1. π‘₯1 0 2. π‘₯2 7000 3. π‘₯3 0 4. π‘₯4 10000 5. 𝑦1 39463.88 6. 𝑦2 28876.50 7. 𝑦3 36764.17 8. 𝐷1 + 0 9. 𝐷1 βˆ’ 32387.88 10. 𝑒1 + 0 11. 𝑒1 βˆ’ 8617.725 12. 𝐷2 + 0 13. 𝐷2 βˆ’ 13616.5 14. 𝑒2 + 0 15. 𝑒2 βˆ’ 39919.50 16. 𝐷3 + 0 17. 𝐷3 βˆ’ 22694.17 18. 𝑒3 + 0 19. 𝑒3 βˆ’ 32031.83 20. 𝐷 68082.50 In Table 5, for a maximum total order of 17000 kg, an order is recommended for π‘₯2 (Supplier Mako) and π‘₯4 (Supplier Gina). The values of 𝑦1 (Aspiration Rate G1) = 39463.88, 𝑦2 (Aspiration Rate G2) = 28876.50, 𝑦3 (Aspiration Rate G3) = 36764.17, and other deviations are given in Table 5. The values of π‘₯1, π‘₯2, π‘₯3, and π‘₯4 are 0, 7000, 0, 10000, respectively. It can be concluded that the order for selecting the best supplier is Supplier Gina with an order quantity of 10000 kg, Supplier Mako with an order quantity of 7000 kg. 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