Application of Process Hierarchy Analysis on the Internal Rating Credit Line Model for Islamic Banks

Banks in carrying out their business activities are always in contact with risk. Therefore, an internal rating system is needed so that the bank can select debtors and counterparts based on the level of risk. One of the bank's activities is the provision of credit lines for Islamic Bank in Indonesia. This study intends to formulate a credit line ranking model for Islamic Banks. This research uses quantitative methods using the Hierarchy Analysis Process method. An important finding of this study is the acquisition of an internal credit line rating model for Islamic Banks which can then be used to assist banks in determining the eligibility of an Islamic Bank to become a bank partner based on the level of risk

A two-phase procedure for a multi-objective programming problem with fuzzy coefficients based on group decision making for project selection

Regional Development Agencies (RDAs) play a major role in ensuring sustainability and reducing inter-regional and intra-regional development disparities in line with the principles and policies set in the National Development Plan and Programs. This is done by enhancing cooperation among the public and private sectors, as well as non-governmental organizations. To achieve these targets, RDAs use certain tools such as financial support programs, technical support programs, and the like. Accordingly, an effective evaluation mechanism is crucial in selecting projects that have more added value and higher multiplier effects. In this regard, determining the right parameters that assist in choosing the best projects should be clearly demonstrated. In this study, the selection of projects according to the evaluating criteria of support mechanisms considered by RDAs are discussed through the procedure provided by a practical solution methodology, which is an integration of fuzzy parametric programming (FPP) and fuzzy linear programming (FLP). Later, a two-phase procedure is introduced to solve multi-objective fuzzy linear programming problems

Selecting a location for a liquefied natural gas terminal in the Eastern Baltic Sea

Liquefied Natural Gas (LNG) industry is among the fastest growing energy market sectors. The gas terminal in Klaipėda allows Lithuania to import natural gas from various countries around the world. One of the most debatable subjects is the location of the future terminal. The problem pertaining to selection of construction sites for the LNG terminal should be investigated and solved using the set of multiple conflicting criteria. Many researchers argue that similar problems should be solved by applying several different Multi-Criteria Decision-Making (MCDM) methods. The research presents the model for application of three different MCDM methods and aggregation of solution results for the problem, which is based both on different objective data and on investigation of expert opinions for determining subjective criteria weights for the problem

Distribution Strategies Analysis Using AHP and TOPSIS: A Distribution Company Case’s Study in Special Region of Yogyakarta, Indonesia

The selection of distribution strategy is important for the company in order for the product to be delivered to the customer in time and according to the required quality and quantity. This research aims to analyze and determine the company's distribution strategy using the AHP and TOPSIS methods. The results of the calculations with AHP indicate that the distributor reliability is seen from the history and experience (0268), effective fund management (0159), and the financial structure of the distributor (0147) are three criteria with the weight of interest highest. The geographical strategy is a strategy that has the highest value so it is recommended to be the main strategy of the company in distributing products to customers.&nbsp

Supply Chain Management and Management Science: A Successful Marriage

The last century has witnessed extant studies on the applications of Management Science (MS) to a diverse set of Supply Chain Management (SCM) issues. This paper provides an overview of the contribution of MS within SCM. A framework is developed in this paper with a sampling of MS contributions to major SCM dimensions. Future research directions are presented

Determination Of Elective Course Based On Hierarchical Fuzzy Topsis Method With Matlab Software

The determination of elective course in undergraduate education is an important decision making process, because the course chosen allows the students to specialize in the area they are interested in. The aim of this study is to apply Hierarchical Fuzzy TOPSIS HFTOPSIS method in determining elective course as a fuzzy multi-criteria decision making FMCDM technique and introduce the programme developed in MATLAB software related to this decision making process. In this study, a decision model based on the process of determining elective course belonging to the sixth semester of third year students receiving education in economics department at a state university is developed. The assessments of the importance weights of the main and sub-criteria used in determining elective course and the assessments of the elective courses opened in the sixth semester in terms of the sub-criteria are performed by using linguistic variables. Then, these linguistic data are transformed into triangular fuzzy numbers, used in two different algorithms of HFTOPSIS and, relevant process is programmed, and the results of the two algorithms are compared. In the study it is concluded that the most important decision criteria for determining the elective course is elements relating to the lecturer 0.76, 0.96, 1.00 . According to the two algorithms, the candidate elective courses are ranked from the best to the worst with respect to the calculated closeness coefficients. The ranking order of three alternative elective courses is similar according to the two approaches handled in the study, and it is as A1>A3> A2. It is seen that the most appropriate elective course is A1 with a closeness coefficient 0.821 according to the first approach and 0.819 according to the second approach. When the evaluation about whether the choice is risky or not via the closeness coefficient of elective course A1is made, it can be expressed that the alternative chosen is “approved and preferred

STAKEHOLDER MANAGEMENT IN REVERSE SUPPLY CHAINS - THE RANKING OF REVERSE SUPPLY CHAINS ENTITIES UPON REQUIREMENTS' FULFILLMENT

Stakeholder management encompasses different activities which have a significant impact on the project realization. Business practice indicates that before and during the project realization, an organization that implements the project, or even consortium of entities, should put much attention in to satisfy different stakeholders' requirements. The aim of this paper is ranking of reverse supply chain (RSC) entities upon key stakeholders requirements' fulfillment. In the first step of research, key stakeholders are identified through stakeholder management analysis. Their requirements are analyzed and weighted by using fuzzy Delphi method. The decision makers perform their assessment taking in account linguistic expressions, so they do not need to think about precise numbers. In this way, the process of decision making is made easier compared to the conventional approach. The determination of the RSC entities upon key stakeholders requirements' fulfillment is performed by using the fuzzy ELECTRE method

Fuzzy Approach in Ranking of Banks according to Financial Performances

Evaluating bank performance on a yearly basis and making comparison among banks in certain time intervals provide an insight into general financial state of banks and their relative position with respect to the environment (creditors, investors, and stakeholders). The aim of this study is to propose a new fuzzy multicriteria model to evaluate banks respecting relative importance of financial performances and their values. The relative importance of each pair of financial performance groups is assessed linguistic expressions which are modeled by triangular fuzzy numbers. Fuzzy Analytic Hierarchical Process (FAHP) is applied to determine relative weights of the financial performances. In order to rank the treated banks, new model based on Fuzzy Technique for Order Performance by Similarity to Ideal Solution (FTOPSIS) is deployed. The proposed model is illustrated by an example giving real life data from 12 banks having 80% share of the Serbian market. In order to verify the proposed FTOPSIS different measures of separation are used. The presented solution enables the ranking of banks, gives an insight of bank’s state to stakeholders, and provides base for successful improvement in a field of strategy quality in bank business

KORIŠTENJE INTEGRIRANOG MCDM MODELA ZA ODABIR TEHNIKE RUDARENJA U SLUČAJU NESIGURNOSTI

The aim objective of this study is to model mining method selection problem for a real world case in Angouran mine which is one of the major zinc producers in Iran. According to many problems of ore body extraction are direct or indirect depend on underground mining method, this issue is one of the most critical decisions in the design stage of mine that should be made. A number of the evaluation criteria that often are in conflicting with each other exist for evaluating feasible mining methods. Therefore, the problem of mining method selection is a multi-criteria decision making (MCDM) issue.On the other hand, according to the sophisticated structure of the problem, imprecise data, less of information, and inherent uncertainty, the usage of the fuzzy sets can be useful. In this paper an integrated model based on fuzzy analytic hierarchy process (FAHP) and fuzzy technique for order preference by similarity to ideal solution (FTOPSIS) is developed. FAHP is applied to determine the relative weights of the evaluation criteria for mining method selection that these weights are inserted to the FTOPSIS technique to rank the alternatives and select the most appropriate alternative. The study was followed by the sensitivity analysis of the results. The results of this study demonstrate the efficiency, capability, and robustness of the proposed model, which can be applied to different types of sophisticated problems in reality.Cilj ovog rada je izvođenje efikasnog i primjenjivog modela odabira najbolje proizvodne tehnike na primjeru Angouran rudnika koji je jedan od glavnih proizvođača cinka u Iranu. Proizvodne tehnike ekstrakcije ruda su izravno ili neizravno ovisne o izboru tehnika izvlačenja ruda, jednog od najkritičnijih pitanja u odlučivanju u fazi projektiranja rudnika koji bi trebao biti izrađen. Broj evaluacijskih kriterija često su u sukobu jedni s drugima pri odabiru i ocjeni prihvatljive proizvodne (rudarske) metode i tehnike. Dakle, problem odabira prihvatljive proizvodne rudarske metode u praksi je problem odabira multi-kriterijskog odlučivanja (MCDM). S druge strane, s obzirom na složenost i strukturu problema, nepreciznih podataka, manjkavost informacija, a time i inherentnu nesigurnost, korištenje fuzzy tehnika može biti od iznimne koristi. U ovom radu integrirani model koji se temelji fuzzy analitičkoj hijerarhiji procesa (FAHP) i fuzzy tehnikama za redom preferencija po sličnosti idealnog rješenja (FTOPSIS) je razvijen i prezentiran. FAHP se primjenjuje za određivanje relativne težine kriterija za ocjenu najbolje proizvodne tehnike pri ekstrakciji ruda u odnosu na ostale dostupne alternativne proizvodne tehnike. Rezultati istraživanja rada testirani su analizom osjetljivosti rezultata. Rezultati ovog istraživanja pokazuju učinkovitost, sposobnost i robusnost predloženog modela izbora proizvodnih tehnika, koji se mogu primijeniti na različite vrste složenih problema u stvarnom životu