Articles

The Implementation of Analytical Hierarchy Process to Choose the Best Solution to Increase Mould Maker Profit

Mould Maker is a company that buy and sell machine for their main business activity. Mould maker have long time machine waiting time to be sold and have low profit margin. The longer the time taken by a machine to be sold, the higher the maintenance cost for the machine. Besides, Mould Maker always purchase machines for their stock in every offer that comes to Mould Maker, so they have overstocked machine in their workshop. With many and vary type of machines that they have, Mould Maker can utilize the machines to increase their profit margin.

Mould Maker have good business environment from the external factor analysis. As for internal analysis, Mould Maker still have room for improvement, some of them are the number of their stock and the number for decision maker. Caused by their low profit margin, Mould Maker cannot hire high value employee to be one of the decision makers. The problem that Mould Maker face is how to improve their profit by utilizing the machines that they have.

Further analysis needed to solve this problem. The SWOT analysis used to find some strategies and need to be fit with the problem faced by Mould maker. The strategies that able to be implemented are rent their machine, accepting manufacture order, improving stock policy, boost marketing strategy, and purchasing car to help Mould Maker to sell their product.

From the strategy alternatives, AHP method is used to choose the best strategy. With AHP method, the best solution can be chosen by considering the value from each consideration criteria. For this research, the best solution proposed by AHP method is to accept manufacture order.