Decision making has become a routine activities carried out by the production manager at Palm oil mill company. One of the problems that will arise is the decline in production quantity. Therefore, this study intended to help the company to determine the optimal amount of crude palm oil production and to determine the order of priority factors influencing the decline in production quantity and also apply the Analytical Hierarchy Process (AHP) method in the production planning the company to assist and facilitate the decision-makers in making decisions. The data input obtained from documentation like inventory, demand and production data. In addition, AHP also is a method for decision making and the data obtained from interviews and questionnaire. The results of this study is the total production and inventories of crude palm oil by the year 2014 turned into optimal and stable; profit is higher than previously; then, the plot data also showed that the total production in 2014 is not stable because there are still decreased. Then the main factors affecting the decline of total production is internal factors. The order of priority of the internal factors is factor capital, labor, raw materials and technology and machines.
Silvia Firda Utami Utami, Abdul Talib Bon and Sukono . Performance Management in Crude Palm Oil Industry using Analytical Hierarchy Process.
DOI: https://doi.org/10.36478/jeasci.2017.3847.3850
URL: https://www.makhillpublications.co/view-article/1816-949x/jeasci.2017.3847.3850