DECISION MAKING IN PORT SELECTION FOR EXPORTING COMPLETELY KNOCKED DOWN (CKD) AUTOMOTIVE PARTS APPROACH OF AHP AND TOPSIS METHODS A CASE STUDY OF PT. XYZ

Abstract

This study was conducted within a logistics company specializing in the export of CKD automotive parts. With the company's expansion in Indonesia, the crucial task of selecting the most suitable port arose. The primary objective was to evaluate two potential ports, namely Tanjung Priok Port and Cikarang Dryport, based on several critical criteria such as service quality, affordability, customer service, infrastructure, and innovation. To accomplish this, the study employed the Analytical Hierarchy Process (AHP) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methods for port selection.The research identified a comprehensive set of five main criteria and twenty sub-criteria for the evaluation process. Through the implementation of the AHP method, Tanjung Priok Port achieved a score of 10.35, while Cikarang Dryport scored 9.65. Furthermore, the TOPSIS analysis resulted in a value of 0.61 for Tanjung Priok Port and 0.38 for Cikarang Dryport. Consequently, based on these findings, Tanjung Priok Port was determined to be the most optimal choice for the company.The outcomes of this research offer significant contributions to the field of strategic decision-making in port selection, enabling the logistics company to enhance operational efficiency and cost optimization for their CKD exports. Moreover, the study provides valuable insights into the practical application of AHP and TOPSIS methods within the context of port selection.