Integration of AHP and TOPSIS Methods for Small and Medium
Industries Development Decision Making
Dublin Core
Title
Integration of AHP and TOPSIS Methods for Small and Medium
Industries Development Decision Making
Industries Development Decision Making
Subject
Decision Making, AHP, TOPSIS, Criteria, SMIs
Description
Financial problems are one of the reasons why small and medium-sized industries (SMIs) in West Kutai have not developed
optimally. Government assistance programs are one of the solutions. This program must be appropriate, so a decision-making
tool is needed to help choose the right SMIs to be assisted later. The weight of the criteria was determined using the Analytical
Hierarchy Process (AHP) technique, and the priority of the SMIs as the preferred proposal for the recipients of development
assistance was determined using the Technique for Other Reference by Similarly to Ideal Solution (TOPSIS) approach. Labor,
investment, production capacity, production value, and raw materials were used to determine the priorities of SMIs
beneficiaries. Furthermore, TOPSIS prioritizes the development of alternative small and medium-sized industries with types of
handicraft commodities. Integration of AHP and TOPSIS methods has been successfully used in the IKM Development Priority
Determination Application, with 83.3% precision and 96.4% accuracy achieved by using a confusion matrix so that the IKM
ranking can be known. The results of the study found that integration of the two methods was successfully used for Small and
Medium Industries Development Decision Making
optimally. Government assistance programs are one of the solutions. This program must be appropriate, so a decision-making
tool is needed to help choose the right SMIs to be assisted later. The weight of the criteria was determined using the Analytical
Hierarchy Process (AHP) technique, and the priority of the SMIs as the preferred proposal for the recipients of development
assistance was determined using the Technique for Other Reference by Similarly to Ideal Solution (TOPSIS) approach. Labor,
investment, production capacity, production value, and raw materials were used to determine the priorities of SMIs
beneficiaries. Furthermore, TOPSIS prioritizes the development of alternative small and medium-sized industries with types of
handicraft commodities. Integration of AHP and TOPSIS methods has been successfully used in the IKM Development Priority
Determination Application, with 83.3% precision and 96.4% accuracy achieved by using a confusion matrix so that the IKM
ranking can be known. The results of the study found that integration of the two methods was successfully used for Small and
Medium Industries Development Decision Making
Creator
Anton Yudhana1
, Rusdi Umar2
, Aldi Bastiatul Fawait3
, Rusdi Umar2
, Aldi Bastiatul Fawait3
Publisher
Universitas Ahmad Dahlan, Yogyakarta, Indonesia
Date
01-10-2022
Contributor
Fajar bagus W
Format
PDF
Language
Indonesia
Type
Text
Files
Collection
Citation
Anton Yudhana1
, Rusdi Umar2
, Aldi Bastiatul Fawait3, “Integration of AHP and TOPSIS Methods for Small and Medium
Industries Development Decision Making,” Repository Horizon University Indonesia, accessed June 28, 2025, https://repository.horizon.ac.id/items/show/9236.
Industries Development Decision Making,” Repository Horizon University Indonesia, accessed June 28, 2025, https://repository.horizon.ac.id/items/show/9236.