CORRELATION TEST APPLICATION OF SUPPLIER’S RANKING USING TOPSIS AND AHP-TOPSIS METHOD
ABSTRACT: The supplier
selection process can be done using multi-criteria decision making (MCDM)
methods in firms. There are many MCDM Methods, but firms must choose the method
suitable with the firm condition. Company A has analyzed supplier’s ranking
using TOPSIS method. TOPSIS method has a marjor weakness in its subjective
weighting. This flaw is overcome using AHP method weighting having undergone a
consistency test. In this study, the comparison of supplier’s ranking using
TOPSIS and AHP-TOPSIS method used correlation test. The aim of this paper is to
determine different result from two methods. Data in suppliers’ ranking is
ordinal data, so this process used Spearman’s rank and Kendall’s tau b
correlation. If most of the ranked scored are same, Kendall’s tau b correlation
should be used. The other way, Spearman rank should be used. The result of this
study is that most of the ranked scored are different, so the process used
Spearman rank p-value of Spearman’s rank correlation of 0.505. It is greater
than 0.05, means there is no statistically significant correlation between two
methods. Furthermore, increment or decrement of supplier’s ranking in one
method is not significantly related to the increment or decrement of supplier’s
ranking in the second method
Author: Ika Yuniwati
Journal Code: jpmatematikagg160035
