Applying AHP to Select the Best Vendor for Bio-Efficacy Trials

https://doi.org/10.35912/jbpd.v4i1.4525
Published: Jul 7, 2024

Abstract:

Purpose: The pesticide industry is highly regulated by various regulations and requirements. Getting a distribution permit for a pesticide depends on the results of bio-efficacy trials carried out by institutions outside the company (vendors). These vendors must be selected from a list that has been made by the Ministry of Agriculture. Choosing a vendor is quite a difficult endeavor because not all vendors have the same competencies.

Research Methodology: One method to choose a vendor among several vendors based on various criteria hierarchically that meets the requirements is to use the Analytical Hierarchy Process (AHP) method. This thesis presents the results of the trial of the use of the AHP method in the XYZ Agrochemical Company using a qualitative and quantitative approach by collecting primary data through questionnaires and interviews with a team of Research and Development experts from the XYZ Agrochemical Company.

Results: The results of the case study at the XYZ Agrochemical Company show the practical application of the AHP model in real-world vendor selection scenarios, providing an overview of the relative significance of each criterion and its impact on the overall decision-making process.

Conclusions: The study concludes that the use of the Analytical Hierarchy Process (AHP) method effectively supports the R&D team of the XYZ Agrochemical Company in determining and prioritizing the selection criteria and sub-criteria for qualified bio-efficacy trial vendors. Applying the AHP method to four vendors allowed for an objective ranking based on agreed-upon parameters, ensuring a transparent and data-driven vendor selection process. This approach enhances decision-making in selecting the most suitable vendor to support regulatory compliance and product development goals.

Limitations: Secondary data was obtained from government regulations, company reports, and relevant literature to form vendor profiles, organizational capabilities, and pesticide regulations that apply specifically to Indonesia.

Contribution: Through the AHP framework, based on the results of the interview, a hierarchical structure of evaluation criteria in selecting vendors was established, including expertise, past performance, laboratory and field facilities, timely delivery, in conducting bio-efficacy trials, and vendor responsiveness in communicating.

Keywords:
1. Analytical Hierarchy Process (AHP)
2. Agrochemical Company
3. Bio-Efficacy Trial
4. Pesticide Regulation
5. Vendor Selection
Authors:
1 . Maria Astriani
2 . Manahan P Siallagan
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How to Cite
Astriani, M. ., & Siallagan, M. P. . (2024). Applying AHP to Select the Best Vendor for Bio-Efficacy Trials. Jurnal Bisnis Dan Pemasaran Digital, 4(1), 57–76. https://doi.org/10.35912/jbpd.v4i1.4525
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Vol. 4 No. 1 (2024): Juli
Articles
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References

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    Darko, A., Chan, A. P. C., Ameyaw, E. E., Owusu, E. K., Pärn, E., & Edwards, D. J. (2019). Review of application of analytic hierarchy process (AHP) in construction. International journal of construction management, 19(5), 436-452.

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    Guler, D., & Yomralioglu, T. (2020). Suitable location selection for the electric vehicle fast charging station with AHP and fuzzy AHP methods using GIS. Annals of GIS, 26(2), 169-189.

    Hsieh, T.-Y., Lu, S.-T., & Tzeng, G.-H. (2004). Fuzzy MCDM approach for planning and design tenders selection in public office buildings. International journal of project management, 22(7), 573-584.

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    Vaidya, O. S., & Kumar, S. (2006). Analytic hierarchy process: An overview of applications. European Journal of operational research, 169(1), 1-29.

    Wirdianto, E., & Unbersa, E. (2008). Aplikasi metode analytical hierarchy process dalam menentukan kriteria penilaian supplier. Jurnal Teknik Industri, 2(29), 6-13.

  1. Brunelli, M. (2014). Introduction to the analytic hierarchy process: Springer.
  2. Darko, A., Chan, A. P. C., Ameyaw, E. E., Owusu, E. K., Pärn, E., & Edwards, D. J. (2019). Review of application of analytic hierarchy process (AHP) in construction. International journal of construction management, 19(5), 436-452.
  3. Dickson, G. W. (1966). An analysis of vendor selection systems and decisions. Journal of purchasing, 2(1), 5-17.
  4. FAO. (2006). Guidelines on Efficacy Evaluation for the Registration of Plant Protection Products: FAO Publications Rome, Italy.
  5. Guler, D., & Yomralioglu, T. (2020). Suitable location selection for the electric vehicle fast charging station with AHP and fuzzy AHP methods using GIS. Annals of GIS, 26(2), 169-189.
  6. Hsieh, T.-Y., Lu, S.-T., & Tzeng, G.-H. (2004). Fuzzy MCDM approach for planning and design tenders selection in public office buildings. International journal of project management, 22(7), 573-584.
  7. Indonesia, M. o. A. R. o. (2021). Regulation of the Minister of Agriculture Number 282 of 2023 on Testing Institutions, Toxicity Testing, Efficacy Testing, and Residue Testing.
  8. Indonesia, M. o. A. R. o. (2022). Regulation of the Minister Of Agriculture Of The Republic Of Indonesia Number 43 of 2019 on Registration Of Pesticides.
  9. Kulakowski, K. (2020). Understanding the analytic hierarchy process. CRC Press. Mu, E., & Pereyra-Rojas, M. (2017). Practical decision making using super decisions v3: An introduction to the analytic hierarchy process: Springer.
  10. Nydick, R. L., & Hill, R. P. (1992). Using the analytic hierarchy process to structure the supplier selection procedure. International Journal of purchasing and materials management, 28(2), 31-36.
  11. Perry, J. (1999). Design and analysis of efficacy evaluation trials.
  12. Saaty, L, T., & Vargas, L. G. (2012). Models, Methods, Concepts & Applications of the Analytic Hierarchy Process.
  13. Saaty, R. W. (1987). The analytic hierarchy process—what it is and how it is used. Mathematical modelling, 9(3-5), 161-176.
  14. Saaty, T. L. (1994). How to make a decision: the analytic hierarchy process. Interfaces, 24(6), 19-43.
  15. Saaty, T. L., & Vargas, L. (2001). Models, Methods, Concepts & Applications of the Analytic Hierarchy Process.
  16. ?ahin, T., Ocak, S., & Top, M. (2019). Analytic hierarchy process for hospital site selection. Health Policy and Technology, 8(1), 42-50.
  17. Sparks, T. C., & Lorsbach, B. A. (2017). Perspectives on the agrochemical industry and agrochemical discovery. Pest management science, 73(4), 672-677.
  18. Phillips, M. W. A. (2020). Agrochemical industry development, trends in R&D and the impact of regulation. Pest management science, 76(10), 3348-3356.
  19. Tadros, T. F. (2013). Encyclopedia of colloid and interface science. (No Title).
  20. UmaDevi, K., Elango, C., & Rajesh, R. (2012). Vendor selection using AHP. Procedia engineering, 38, 1946-1949.
  21. Vaidya, O. S., & Kumar, S. (2006). Analytic hierarchy process: An overview of applications. European Journal of operational research, 169(1), 1-29.
  22. Wirdianto, E., & Unbersa, E. (2008). Aplikasi metode analytical hierarchy process dalam menentukan kriteria penilaian supplier. Jurnal Teknik Industri, 2(29), 6-13.