Application of Analytical Hierarchy Process (AHP) Method in Determining Commercial Vehicle Type of Supply Considering Owning and Operating Cost

Abstract

Customer vehicle is a type of vehicle used to transport goods for commercial purposes. In Indonesia commercial vehicle distributor is the center of sales distribution, thus the marketing and sales team must be able to offer their product according to each customer needs. In the common practice, the offering is only based on customer budget of the vehicle price (owning cost) for the required specifications, without providing an understanding of the total cost of ownership which includes operating costs. The team's lack of knowledge aboutvehicle specifications and operating costs is the main cause, for this reason it is necessary to analyze the calculation of owning & operating costs and determine the offer for the type of commercial vehicle. The purpose of this study is to determine the type of commercial vehicle that must be selected in order to earn more profit for the customer, as well as to provide an investment feasibility analysis of the type of commercial vehicle selected based on the calculation of the vehicle's owning & operating cost. Vehicle selection analysis is carriedout using the Analytical Hierarchy Process (AHP) by comparing alternative vehicle options by considering the specification criteria, purchase price, and maintenance costs. In addition, an investment feasibility analysis is carried out using NPV and IRR analysis to find out whether the investment made is profitable or not.