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

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.