Integration Integration of AHP and TOPSIS Methods for Small and Medium Industries Development Decision Making

Abstract

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.

Keywords

• decision making
• ahp
• topsis
• criteria
• smis