International Academic Journal of Business Management

  • ISSN 2454-2768

Multi Attribute Decision Making Using Simple Additive Weighting and Weighted Product in Investment

Yeni Melia

Abstract: Investment always have two sides, namely return and risks, the higher return offered the higher risk to be borne by investors. Return on investment that is stock dividends and capital gains less predictable, in which investors had to do an analysis or judgment shares in order to gain an advantage. Decision objective need a system that could help in the decision. The selection of share is expected to help investors in determining based on sector investment that will rank. It started by cleaning the analysis on key aspects of stock, the assessment criteria that you later then used as the criteria in the rank process and weighting on the respective the assessment criteria. Multi attribute decision making (MADM) is a method of the decision to establish an alternative best of a number of alternatives based on a number of certain criteria. One method the MADM used in research is SAW (simple additive weighting model) and WPM (weighted product) model. The result from the this study by using the Simple Additive Weight (SAW) and Weighted Product (WP) showed that high value is 0,79965 and 0,18434.

Keywords: Alternative, Attribute, Simple Additive Weighting, Weighted Product, Investment

Page: 58-72

Volume 3, Issue 2, 2016