CHAPTERIILITERATUREREVIEW

2.1DeductiveStudy
2.1.1

Theory of Analytic Hierarchy Process (AHP)

Analytic Hierarchy Process (AHP) is a framework of logic and problem-solving

that spans the spectrum from instant awareness to fully integrated consciousness by
organizing perception, feelings, judgments and memories into a hierarchy of forces that
influence decision results. The AHP is based on innate human ability to use information
and experience to estimates relative magnitudes through paired comparisons. These
comparisons are used to construct ratio scales on variety of dimensions both tangible and
intangible. Arranging these dimensions in hierarchic or network structure allows a
systematic procedure to organize our basic reasoning and intuition by breaking down a
problem into its smaller constituents parts. The AHP thus leads from simple pairwise
comparison judgment to the priorities in hierarchy. In the simple most common case the
forces arranged from the more general and less controllable to the more specific and
controllable. Starting from time horizons and scenario of the original problem we
progress to the actors, then to their objectives and policies. Further development of the
hierarchy moves to those affected by a decision and their objectives and policies. Finally
the structure generates the alternative outcomes of a prediction or the available choices in
a priority decision. Failure can occur when the forecasting effort does not allow for the
full range of possibilities, or assumes that certain outcomes will happen because of
limited awareness or prior assumptions of the forecaster. The AHP allows us to become
committed participants, who fully understand, appreciate, and weigh the influences of the
forces that control the outcome. (Saaty L. Thomas, 1994, Chap. 1)

2.1.2

Restaurant Inventory Management

In the structure of the supply chain management, supplier chain is a unity which is

the provider of the first material the chain of distribution of goods will begin. The first
material can be shaped raw materials, supporting materials, merchandise or spare parts.
This research uses raw materials produced consumables for food and beverages The
number of suppliers can be a lot or a little. (IPB Press, 2013)
Needs of raw materials continue to be available will support the production
process. The role of the supplier determines the success of the company, if the raw
material provided by suppliers of poor quality, then this will also affect the quality of the
product (Gunawan, D., 2009). And if the supplier cannot provide the raw materials in
accordance with the needs of the company, it can be ascertained that the production
schedule will be disrupted. Determining the right suppliers based on the criteria and subcriteria which predetermined the company can provide the best performance for the
company. Some of the factors that influence the supply of raw materials ordering process
raw materials to suppliers include:
1. Estimated use.
2. The price of raw materials.
3. The cost of the purchase.
4. Expenditure Planning.
5. The use of materials.
6. The waiting time (lead time).
7. Method of Purchase materials.
8. Inventory Safety (Safety Stock).
9. Buy Back (Re-order Point)
(Ahyari, Agus., 1986)

2.1.3

Selection of Suppliers

The main factors considered by a company when choosing a supplier is (Stevenson,

William J., 2012).
1. Price.
2. Quality.
3. Service.
4. Location.
5. Policy supplier inventory.
6. Flexibility.
Some steps in evaluating suppliers, among others (Miranda & Tunggal, Widjaja. A.,
2007)
1. Managers identify all potential suppliers who sell items purchased company.
2. Make a list of attributes for in the evaluation
3. Management decides the importance of each attribute for the company.
4. Make a weighted composite measure of each attribute.

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