Main Article Content

Abstract

Decision making at top management is a strategic issue, this affects and becomes one of the determining factors for success for the company. The selection of contractors is one way to make decisions, the method that is widely used in decision making is the Analytic Hierarchy Process (AHP) method, although this method is very old, this method is still widely used, because AHP is one of the popular decision-making methods for decision making. multi-criteria (MCDM), by taking a case study in a well-known palm oil company headquartered in Jakarta (Indonesia). The results of the criteria score are consistent with 0.002 and in the final selection of the first ranked alternative there are 3 (three) contractors with the best score of 25% who excel in Pre-Qualification and Commercial Criteria testing, with this method the company is expected to be able to choose the right contractor for business partners and smooth operations.

Keywords

AHP; Hierarchy Process; Decision-Making; MCDM; Selection of Contractors

Article Details

References

  1. Bennet, Dr. A., & Bennet, Dr. D. (2013). Decision-making in the new reality: Complexity, knowledge, and knowing. MQIPress.
  2. Juwana, H. (2016). Kontrak Kerja Konstruksi. Lex Jurnalica, 13 Nomor 3, 193.
  3. Koontz, H., & O’Donnell, C. (2004). Principles of management: an analysis of managerial functions (Intellectu). Pickering & Chatto.
  4. Marchisotti, G. G., De Domingos, M. L. C., & Almeida, R. L. D. E. (2018). Decision-making at the first management level: The interference of the organizational culture. Revista de Administracao Mackenzie, 19(3). https://doi.org/10.1590/1678-6971/eRAMR180106
  5. Maulidina, A. D., & Putra, F. E. (2018). Analysis of Selection of Rice Supplier Using the Analytical Hierarchy Process Method. Journal of Applied Research on Industrial Engineering, 14(3), 253–262. https://doi.org/10.32816/tiarsie.v14i1.19
  6. Pangestika, M. W., & Siregar, A. C. (2018). Analytic Hierarchy Process Dalam Pembobotan Untuk Pengaturan Jadwal Dosen. Cybernetics, 2(01), 189. https://doi.org/10.29406/cbn.v2i01.1145
  7. Saaty, T. L., & Vargas, L. G. (2001). Models, Methods, Concepts & Applications of the Analytic Hierarchy Process. In Journal of the Operational Research Society (1st editio, Vol. 13, Issue 3). Kluwer Academic Publishers. https://doi.org/10.1057/jors.1962.41
  8. Saaty, T., & Vargas, L. (2012). Models, Methods, Concepts & Applications of the Analytic Hierarchy Process. In Seven Pillars of The Hierarchical Process of Analysis, Models, Methods, Concepts & Applications of Analytic Hierarchy Process (2 Editon, p. p 23-40). Springer ISBN 978-1-4614-3596-9.
  9. Saaty, T., Vargas, L., & HJ, Z. (2017). A Structured Scientific Solution to The Israeli-Palestinian Conflict: The Analytic Hierarch Process Approach". Analytics Decision, 2 (7), 2–53.
  10. Schoemaker, P. J. H., & Russo, J. E. (2014). Decision-Making. Palgrave Macmillan, 1–4. https://doi.org/10.1057/9781137294678.0160
  11. Sipahi, S., & Timor, M. (2010). The Analytic Hierarchy Process and Analytic Network Process: An overview of Applications. Management Decision, 48(5), 775–808. https://doi.org/10.1108/00251741011043920