Decision Making in Determining Priorities for Procurement of Goods and Services using AHP-TOPSIS Method in Oil and Gas Company.

The upstream oil and gas industry has a significant contribution to the national economy; however, in practice, it often faces challenges in the procurement process of goods and services, particularly due to the high volume of requests and limited human resources. This study aims to develop a structured and objective procurement prioritization system using the Analytical Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) methods to help procurement teams determine which procurement packages should be prioritized in an objective and structured manner. Through the identification and validation of five main procurement criteria, the AHP method found the highest criteria weights in sequence: procurement that related of HSSE, production, work execution time, budget source, and process complexity. The TOPSIS method identified the procurement package priorities from the list of procurement requests at PT. XYZ – Zone A. The results of the procurement package ranking based on primary data from experts and secondary data from the company are expected to improve the efficiency and effectiveness of the procurement process and support the smooth operation of field activities.

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Publication Details

Journal
Asian Journal of Engineering Social and Health
Published
2025-08-27
DOI
https://doi.org/10.46799/ajesh.v4i8.624
Primary Topic
Multi-Criteria Decision Making
Type
article
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article

Decision Making in Determining Priorities for Procurement of Goods and Services using AHP-TOPSIS Method in Oil and Gas Company.

Prameswari Wimala, Sari Wangi Pandan
Asian Journal of Engineering Social and Health
Multi-Criteria Decision Making
article

Decision Making in Determining Priorities for Procurement of Goods and Services using AHP-TOPSIS Method in Oil and Gas Company.

Prameswari Wimala, Sari Wangi Pandan
article en

Abstract

The upstream oil and gas industry has a significant contribution to the national economy; however, in practice, it often faces challenges in the procurement process of goods and services, particularly due to the high volume of requests and limited human resources. This study aims to develop a structured and objective procurement prioritization system using the Analytical Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) methods to help procurement teams determine which procurement packages should be prioritized in an objective and structured manner. Through the identification and validation of five main procurement criteria, the AHP method found the highest criteria weights in sequence: procurement that related of HSSE, production, work execution time, budget source, and process complexity. The TOPSIS method identified the procurement package priorities from the list of procurement requests at PT. XYZ – Zone A. The results of the procurement package ranking based on primary data from experts and secondary data from the company are expected to improve the efficiency and effectiveness of the procurement process and support the smooth operation of field activities.

Asian Journal of Engineering Social and HealthVol. 4(8)
Universitas Gadjah Mada (ID)
Openalex Percentile: Top 71%
Multi-Criteria Decision Making
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Decision Making in Determining Priorities for Procurement of Goods and Services using AHP-TOPSIS Method in Oil and Gas Company. — Prameswari Wimala, Sari Wangi Pandan · Asian Journal of Engineering Social and Health (2025) | TGRS Research Map | TGRS