ABSTRACT: The function of banking process can be broadly defined as an institution functioning as a capital receiver and lender, as well as support for trading and payment transactions. In order to maintain the stability of the economy through lending, Bank Indonesia issued a form letter on March 15, 2012 on the application of risk management for the bank conducting credit. In an effort to minimize these problems, Bank Indonesia recommends the precautionary principle in arranging the loan terms and choose the prospective customer in the credit granting institutions, both banks and cooperatives to take into account the risk on lending. A method is needed to select bank for credit applications to the public, i.e. the customer. This research uses the comparison of MADM (Multiple Attribute Decision Making) between TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) method and ELECTRE (ELimination Et Choix TRaduisant la realitE) method for the loan provisions to the customers. With the hope of getting the quickest and the most accurate solutions, the hesitancy in determining customers for lending can then be minimized.
The aim of this study is to analyze the quality of Internet banking services consisting of
Efficiency, System Availability, Fulfillment, Privacy, Responsiveness, Compensation and Contact with positive
and significant effects partially and simultaneously towards the Customer Satisfaction at Bank in Bandung. The
research method used is associative descriptive method with data collection techniques through questionnaires.
The results showed that the quality of Internet banking services consisting of Efficiency, System Availability,
Fulfillment, Privacy, Responsiveness, Compensation and Contact had a positive and significant effect on
customer satisfaction at Bank in Bandung
The use of genetic algorithm, clustering and feature selection techniques in ...IJMIT JOURNAL
Decision tree modelling, as one of data mining techniques, is used for credit scoring of bank customers.
The main problem is the construction of decision trees that could classify customers optimally. This study
presents a new hybrid mining approach in the design of an effective and appropriate credit scoring model.
It is based on genetic algorithm for credit scoring of bank customers in order to offer credit facilities to
each class of customers. Genetic algorithm can help banks in credit scoring of customers by selecting
appropriate features and building optimum decision trees. The new proposed hybrid classification model is
established based on a combination of clustering, feature selection, decision trees, and genetic algorithm
techniques. We used clustering and feature selection techniques to pre-process the input samples to
construct the decision trees in the credit scoring model. The proposed hybrid model choices and combines
the best decision trees based on the optimality criteria. It constructs the final decision tree for credit
scoring of customers. Using one credit dataset, results confirm that the classification accuracy of the
proposed hybrid classification model is more than almost the entire classification models that have been
compared in this paper. Furthermore, the number of leaves and the size of the constructed decision tree
(i.e. complexity) are less, compared with other decision tree models. In this work, one financial dataset was
chosen for experiments, including Bank Mellat credit dataset.
The Influence of Solvency Ratio Decision on Rural Bank Dinar Pusaka In The Di...inventionjournals
The solvency ratio is a ratio that can be used to influence lending decisions on the BPR. This research purpose to test and find empirical evidence whether the Debt to Assets Ratio, Times Interest Earned Ratio, and Long-term Debt to Equity Ratio influence on lending decisions. The population useful for customers apply for credit to the BPR Dinar Pusaka in the district Sidoarjo. The sample in this research were selected using purposive sampling method until elected only 30 customers during the three periods, namely the year 2013 to 2015. Data analysis technique used is the logistic regression analysis. The research results show that Times Interest Earned Ratio variable does not affect the lending decisions. Meanwhile, the variable Debt to Assets Ratio and Long-term Debt to Equity Ratio influence on lending decisions
Applying Convolutional-GRU for Term Deposit Likelihood PredictionVandanaSharma356
Banks are normally offered two kinds of deposit accounts. It consists of deposits like current/saving account and term deposits like fixed or recurring deposits.For enhancing the maximized profit from bank as well as customer perspective, term deposit can accelerate uplifting of finance fields. This paper focuses on likelihood of term deposit subscription taken by the customers. Bank campaign efforts and customer detail analysis caninfluence term deposit subscription chances. An automated system is approached in this paper that works towards prediction of term deposit investment possibilities in advance. This paper proposes deep learning based hybrid model that stacks Convolutional layers and Recurrent Neural Network (RNN) layers as predictive model. For RNN, Gated Recurrent Unit (GRU) is employed. The proposed predictive model is later compared with other benchmark classifiers such as k-Nearest Neighbor (k-NN), Decision tree classifier (DT), and Multi-layer perceptron classifier (MLP). Experimental study concludesthat proposed model attainsan accuracy of 89.59% and MSE of 0.1041 which outperform wellother baseline models.
Business Intelligence - A Gift for Decision Maker for the Effective Decision ...IJERDJOURNAL
ABSTRACT: Business Intelligence is a socio-technical concept emerged to help managers especially in their decision making tasks. A manager with different decision making styles has been started to make use of business intelligence in their own ways. Are the all managers taking benefits of Business intelligence in the same way? Does Business intelligence give each category what they want in the decision making process? If the answer to these questions is – No, then what is the expectation of managers from BI having different decision making style? Will BI could satisfy their needs? If yes, then how? By using well-formed theory in different styles of decision making and taking BI capabilities into consideration this paper highlights the framework which defines appropriate BI capabilities with each decision making style. Study shows in order to serve each style of decision in which BI capabilities changes with respect to style. It is believed that by making BI customized based on decision making styles; BI would be the much more successful in serving all the categories of managers
Extended pso algorithm for improvement problems k means clustering algorithmIJMIT JOURNAL
The clustering is a without monitoring process and one of the most common data mining techniques. The
purpose of clustering is grouping similar data together in a group, so were most similar to each other in a
cluster and the difference with most other instances in the cluster are. In this paper we focus on clustering
partition k-means, due to ease of implementation and high-speed performance of large data sets, After 30
year it is still very popular among the developed clustering algorithm and then for improvement problem of
placing of k-means algorithm in local optimal, we pose extended PSO algorithm, that its name is ECPSO.
Our new algorithm is able to be cause of exit from local optimal and with high percent produce the
problem’s optimal answer. The probe of results show that mooted algorithm have better performance
regards as other clustering algorithms specially in two index, the carefulness of clustering and the quality
of clustering.
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology.
The aim of this study is to analyze the quality of Internet banking services consisting of
Efficiency, System Availability, Fulfillment, Privacy, Responsiveness, Compensation and Contact with positive
and significant effects partially and simultaneously towards the Customer Satisfaction at Bank in Bandung. The
research method used is associative descriptive method with data collection techniques through questionnaires.
The results showed that the quality of Internet banking services consisting of Efficiency, System Availability,
Fulfillment, Privacy, Responsiveness, Compensation and Contact had a positive and significant effect on
customer satisfaction at Bank in Bandung
The use of genetic algorithm, clustering and feature selection techniques in ...IJMIT JOURNAL
Decision tree modelling, as one of data mining techniques, is used for credit scoring of bank customers.
The main problem is the construction of decision trees that could classify customers optimally. This study
presents a new hybrid mining approach in the design of an effective and appropriate credit scoring model.
It is based on genetic algorithm for credit scoring of bank customers in order to offer credit facilities to
each class of customers. Genetic algorithm can help banks in credit scoring of customers by selecting
appropriate features and building optimum decision trees. The new proposed hybrid classification model is
established based on a combination of clustering, feature selection, decision trees, and genetic algorithm
techniques. We used clustering and feature selection techniques to pre-process the input samples to
construct the decision trees in the credit scoring model. The proposed hybrid model choices and combines
the best decision trees based on the optimality criteria. It constructs the final decision tree for credit
scoring of customers. Using one credit dataset, results confirm that the classification accuracy of the
proposed hybrid classification model is more than almost the entire classification models that have been
compared in this paper. Furthermore, the number of leaves and the size of the constructed decision tree
(i.e. complexity) are less, compared with other decision tree models. In this work, one financial dataset was
chosen for experiments, including Bank Mellat credit dataset.
The Influence of Solvency Ratio Decision on Rural Bank Dinar Pusaka In The Di...inventionjournals
The solvency ratio is a ratio that can be used to influence lending decisions on the BPR. This research purpose to test and find empirical evidence whether the Debt to Assets Ratio, Times Interest Earned Ratio, and Long-term Debt to Equity Ratio influence on lending decisions. The population useful for customers apply for credit to the BPR Dinar Pusaka in the district Sidoarjo. The sample in this research were selected using purposive sampling method until elected only 30 customers during the three periods, namely the year 2013 to 2015. Data analysis technique used is the logistic regression analysis. The research results show that Times Interest Earned Ratio variable does not affect the lending decisions. Meanwhile, the variable Debt to Assets Ratio and Long-term Debt to Equity Ratio influence on lending decisions
Applying Convolutional-GRU for Term Deposit Likelihood PredictionVandanaSharma356
Banks are normally offered two kinds of deposit accounts. It consists of deposits like current/saving account and term deposits like fixed or recurring deposits.For enhancing the maximized profit from bank as well as customer perspective, term deposit can accelerate uplifting of finance fields. This paper focuses on likelihood of term deposit subscription taken by the customers. Bank campaign efforts and customer detail analysis caninfluence term deposit subscription chances. An automated system is approached in this paper that works towards prediction of term deposit investment possibilities in advance. This paper proposes deep learning based hybrid model that stacks Convolutional layers and Recurrent Neural Network (RNN) layers as predictive model. For RNN, Gated Recurrent Unit (GRU) is employed. The proposed predictive model is later compared with other benchmark classifiers such as k-Nearest Neighbor (k-NN), Decision tree classifier (DT), and Multi-layer perceptron classifier (MLP). Experimental study concludesthat proposed model attainsan accuracy of 89.59% and MSE of 0.1041 which outperform wellother baseline models.
Business Intelligence - A Gift for Decision Maker for the Effective Decision ...IJERDJOURNAL
ABSTRACT: Business Intelligence is a socio-technical concept emerged to help managers especially in their decision making tasks. A manager with different decision making styles has been started to make use of business intelligence in their own ways. Are the all managers taking benefits of Business intelligence in the same way? Does Business intelligence give each category what they want in the decision making process? If the answer to these questions is – No, then what is the expectation of managers from BI having different decision making style? Will BI could satisfy their needs? If yes, then how? By using well-formed theory in different styles of decision making and taking BI capabilities into consideration this paper highlights the framework which defines appropriate BI capabilities with each decision making style. Study shows in order to serve each style of decision in which BI capabilities changes with respect to style. It is believed that by making BI customized based on decision making styles; BI would be the much more successful in serving all the categories of managers
Extended pso algorithm for improvement problems k means clustering algorithmIJMIT JOURNAL
The clustering is a without monitoring process and one of the most common data mining techniques. The
purpose of clustering is grouping similar data together in a group, so were most similar to each other in a
cluster and the difference with most other instances in the cluster are. In this paper we focus on clustering
partition k-means, due to ease of implementation and high-speed performance of large data sets, After 30
year it is still very popular among the developed clustering algorithm and then for improvement problem of
placing of k-means algorithm in local optimal, we pose extended PSO algorithm, that its name is ECPSO.
Our new algorithm is able to be cause of exit from local optimal and with high percent produce the
problem’s optimal answer. The probe of results show that mooted algorithm have better performance
regards as other clustering algorithms specially in two index, the carefulness of clustering and the quality
of clustering.
IJRET : International Journal of Research in Engineering and Technology is an international peer reviewed, online journal published by eSAT Publishing House for the enhancement of research in various disciplines of Engineering and Technology. The aim and scope of the journal is to provide an academic medium and an important reference for the advancement and dissemination of research results that support high-level learning, teaching and research in the fields of Engineering and Technology. We bring together Scientists, Academician, Field Engineers, Scholars and Students of related fields of Engineering and Technology.
Drivers of e business value creation inIJMIT JOURNAL
With the development and growth of internet, its applications of e-banking, e-commerce, and e-business
became irreplaceable channels regarding its fast access, rich content, and smooth interactivity. High
investments are paid toward improving the quality of service offered by the banks. This paper is dedicated
to empirically investigating the drivers of e-Business value creation in the Jordanian banking sector. This
work summarizes the main differences among employees of Jordanian and foreign bank regarding their
perspectives. Many of the competing foreign banks to the Jordanian banks are enforced with huge financial
capital, having long periods of banking practices and are employing cutting-edge technologies and tools.
To minimize the technological gap, Jordanian banks are working hard to develop their e-Business services.
This in one hand has to enhance their trust, satisfaction, and commitment toward existing customers and
entice new comers on other hand. Based on business model of Amit and Zott, i.e. the four constructs of e-
Value framework (efficiency, complementarities, lock-in, and novelty), four hypotheses have been
formulated to test the differences in the drivers of e-Business value creation between Jordanian and foreign
banks. A survey questionnaire in a form of paper-and-pencil was delivered personally to 200 employees
from four main Jordanian banks and 200 employees from four foreign banks working in Jordan. The
questionnaire was formed and constructed to test the proposed hypotheses. the findings in this study based
on the SEM and T-test analyses, revealed important implications that will help banks’ managers to make
well-informed decisions and policies regarding investments and resources allocation for implementing e-
Business strategies and ventures. The paper concludes with discussing the importance of these findings for
practitioners and for future research on value accrued from e-Business services.
Determinants of Banks’ Financial Performance: A Comparative Study between Nat...inventionjournals
Financial performance is one of the most critical factors having impact on the decision making of the resource providers. And thus to ensure the existence in the ever growing competitive business environment, every institution should be more concerned about the factors affecting their financial performance. This paper specially focuses on identifying the factors having impact on the financial performance of the commercial banks operating in Bangladesh. An effort has also been exerted to determine whether the extent of influence of various factors on financial performance varies with respect to local private and nationalized commercial banks. For this purpose 10 local private commercial banks (PCB) and all nationalized commercial banks (NCB) have been taken covering the period from 2008-2014. Here, data has been collected from the annual reports of the banks under consideration. To draw conclusion a multiple regression has been run by considering financial performance (profitability) as dependent variable and operating efficiency, asset utilization , liquidity, credit risk, capital adequacy and size of the company as independent variables. The study finds that asset utilization and operating efficiency have significant positive impact on banks' financial performance (profitability) whereas credit risk has significant negative impact. However, for PCBs asset utilization is the most critical factor to performance. On the other hand, result shows that in case of NCB 1 taka increase in credit risk is responsible for negative return of 0.968 taka. It is found that financial performance has no significant relationship with size and liquidity of the banks
Profitability Determinants of Go-Public Bank in Indonesia: Empirical Evidenc...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Supervised and unsupervised data mining approaches in loan default prediction IJECEIAES
Given the paramount importance of data mining in organizations and the possible contribution of a data-driven customer classification recommender systems for loan-extending financial institutions, the study applied supervised and supervised data mining approaches to derive the best classifier of loan default. A total of 900 instances with determined attributes and class labels were used for the training and cross-validation processes while prediction used 100 new instances without class labels. In the training phase, J48 with confidence factor of 50% attained the highest classification accuracy (76.85%), k-nearest neighbors (k-NN) 3 the highest (78.38%) in IBk variants, naïve Bayes has a classification accuracy of 76.65%, and logistic has 77.31% classification accuracy. k-NN 3 and logistic have the highest classification accuracy, F-measures, and kappa statistics. Implementation of these algorithms to the test set yielded 48 non-defaulters and 52 defaulters for k-NN 3 while 44 non-defaulters and 56 defaulters under logistic. Implications were discussed in the paper.
Influence of Interest Rate, Location, Services and Credit Procedures to Decis...QUESTJOURNAL
ABSTRACT: The purpose of this study is to determine the Influence of Interest Rates, Location, Service and Procedure Credit Against Decision Making Credit at Bank Sulselbar Makassar Branch. The population in this study were customers in the last year in April 2012 until April 2013 At Bank Sulselbar Makassar Branch with the number of samples of 80 people. Methods in collecting data in this study are questionnaires, interviews, and documentation. The method of data analysis using descriptive method and quantitative method that is by multiple linear regression analysis used to measure the Influence of Interest Rate, Location, Service and Credit Procedure To Decision Of Taking Credit At Bank Sulselbar Makassar Branch. Based on the F test of independent variables (interest rates, location, service and credit procedures) together have a positive and significant effect on the dependent variable that is the decision to take credit. By testing the correlation coefficient (R) obtained that the level of correlation or relationship between Interest Rates, Location, Service and Procedure Credit Against Decision Making Credit at Bank Sulselbar Makassar Branch is a high relationship that is 61.8%. And the rate of interest is the most dominant factor influencing Decision Making Sulselbar Credit Bank Branch In Makassar.
How analytical hierarchy process prioritizing internet banking influencing fa...IJECEIAES
Internet banking is a method for conducting financial transactions online that makes use of the internet as a platform. Customers could transact at any time and from any location. Numerous aspects relating to the adoption of internet banking have been analyzed and studied in recent in-depth studies from the literature. This paper will merge these numerous predefined factors into a model by drawing on the various ideas related to the acceptance model. It was decided to adapt the analytical hierarchy process (AHP) method for finding the important numerous components for the model. The finest mathematical calculation method is AHP, which enables decision-makers to prioritize their ranking in order to satisfy various criteria. The goal of this research is to rank the elements that influence the use of online banking. Three main factors such as technical information, website and service availability were chosen as the main factors of the model based on the literature review. Sub-factors such as ease of use, responsiveness, privacy, reliability, security, communication and efficiency were also suggested and combined into a single integrated framework. Utilizing the systematic literature review (SLR) methodology, several factors were found. As a result, the article will enhance understanding of the unique elements supporting the adoption of internet banking.
This research aims to identify and analyze the effect of Capital Adequacy Ratio (CAR), Operation Expense (BOPO), Net Interest Margin (NIM), and Non Performing Loan (NPL) of the Loan to Deposit Ratio (LDR) of conventional bank on the Indonesia Stock Exchange period 2012 – 2017, either simultaneously or partially. Independent variables used in this study is CAR, BOPO, NIM and NPL, while LDR as the dependent variable.The population in this research is conventional bank listed on the Indonesia Stock Exchange. The sampling technique in this research is purposive sampling. The number of samples in accordance with the prescribed criteria are as many as 35 samples. Based on the result of the research found that the variable CAR influences negatively insignificantly toward LDR, BOPO and NIM influences positively insignificantly toward LDR, while the variable NPL influences positively significantly toward CAR. But simultaneously CAR, BOPO, NIM, and NPL jointly affect the LDR.
Customer and Stakeholder Perspective using Analytical Hierarchy Process Metho...sececonf
The measurement of the higher education
performance is a complex issue and becoming
increasingly important. Currently, performance
measurements have been changed. It is no longer
evaluated from the classical financial indicators.
Instead, the customer satisfaction has been proposed
as the basis for a ‘management strategic’ within
organizational. This paper presents performance
measurement at the higher education concerning in
customers and stakeholders’ perspective using the
Analytic Hierarchy Process (AHP) method. AHP is a
quantitative method which can deal with complicated
decision-making problem for evaluation. Total of four
main criteria and 26 sub-criteria were identified as
significant to the customers and stakeholders’
perspective. This empirically finding is suggested to
be a good performance measurement for solving the
problem multi criteria and contributes strategic goal
in higher education.
Keywords— Analytic Hierarchy Process (AHP),
Performance Measurement, Customer and Stakeholders
Perspective
Consumer Credit Scoring Using Logistic Regression and Random ForestHirak Sen Roy
Project Details: In this study, the concept and application of credit scoring in a German banking environment is
explained. A credit scoring model has been developed using logistic regression and random forest. Limitations of
the model are explained and possible solutions are given with an overview of LASSO.
Guide: Dr. Sibnarayan Guria, Associate Professor and Head of the Department, Department of
Statistics, West Bengal State University
Language Used: R
Purchase Decision Analysis Marketing Mix (Case Study Mandiri E-Cash Transacti...inventionjournals
PT. Bank Mandiri experiencing some problems that the level of use of Mandiri e-Cash Registered and Unregistered who have too big difference. The problems are caused by factors of product, price, promotion, distribution channels in the decision Mandiri e-Cash. This study aims to determine the effect of marketing mix on purchase decisions in Mandiri e-Cash Transaction Banking Retail Group. The study used quantitative methods using a type of survey, data collection methods with questionnaires. The population in this study are all users of Mandirie-Cash both Registered and Unregistered much as 302.435 which consists of the Mandiri e-Cash Registered and Unregistered 36.462 and 265.973 number. Probability sampling technique with Slovin formula obtained a sample of 399.39 or 400 respondents. Data were analyzed using SEM (The Structural Equation Model). The results showed that the products and distribution channels are not significantly influence the purchasing decision. Prices and promotions influence on purchase decisions Mandiri e-Cash.
Drivers of e business value creation inIJMIT JOURNAL
With the development and growth of internet, its applications of e-banking, e-commerce, and e-business
became irreplaceable channels regarding its fast access, rich content, and smooth interactivity. High
investments are paid toward improving the quality of service offered by the banks. This paper is dedicated
to empirically investigating the drivers of e-Business value creation in the Jordanian banking sector. This
work summarizes the main differences among employees of Jordanian and foreign bank regarding their
perspectives. Many of the competing foreign banks to the Jordanian banks are enforced with huge financial
capital, having long periods of banking practices and are employing cutting-edge technologies and tools.
To minimize the technological gap, Jordanian banks are working hard to develop their e-Business services.
This in one hand has to enhance their trust, satisfaction, and commitment toward existing customers and
entice new comers on other hand. Based on business model of Amit and Zott, i.e. the four constructs of e-
Value framework (efficiency, complementarities, lock-in, and novelty), four hypotheses have been
formulated to test the differences in the drivers of e-Business value creation between Jordanian and foreign
banks. A survey questionnaire in a form of paper-and-pencil was delivered personally to 200 employees
from four main Jordanian banks and 200 employees from four foreign banks working in Jordan. The
questionnaire was formed and constructed to test the proposed hypotheses. the findings in this study based
on the SEM and T-test analyses, revealed important implications that will help banks’ managers to make
well-informed decisions and policies regarding investments and resources allocation for implementing e-
Business strategies and ventures. The paper concludes with discussing the importance of these findings for
practitioners and for future research on value accrued from e-Business services.
Determinants of Banks’ Financial Performance: A Comparative Study between Nat...inventionjournals
Financial performance is one of the most critical factors having impact on the decision making of the resource providers. And thus to ensure the existence in the ever growing competitive business environment, every institution should be more concerned about the factors affecting their financial performance. This paper specially focuses on identifying the factors having impact on the financial performance of the commercial banks operating in Bangladesh. An effort has also been exerted to determine whether the extent of influence of various factors on financial performance varies with respect to local private and nationalized commercial banks. For this purpose 10 local private commercial banks (PCB) and all nationalized commercial banks (NCB) have been taken covering the period from 2008-2014. Here, data has been collected from the annual reports of the banks under consideration. To draw conclusion a multiple regression has been run by considering financial performance (profitability) as dependent variable and operating efficiency, asset utilization , liquidity, credit risk, capital adequacy and size of the company as independent variables. The study finds that asset utilization and operating efficiency have significant positive impact on banks' financial performance (profitability) whereas credit risk has significant negative impact. However, for PCBs asset utilization is the most critical factor to performance. On the other hand, result shows that in case of NCB 1 taka increase in credit risk is responsible for negative return of 0.968 taka. It is found that financial performance has no significant relationship with size and liquidity of the banks
Profitability Determinants of Go-Public Bank in Indonesia: Empirical Evidenc...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
Supervised and unsupervised data mining approaches in loan default prediction IJECEIAES
Given the paramount importance of data mining in organizations and the possible contribution of a data-driven customer classification recommender systems for loan-extending financial institutions, the study applied supervised and supervised data mining approaches to derive the best classifier of loan default. A total of 900 instances with determined attributes and class labels were used for the training and cross-validation processes while prediction used 100 new instances without class labels. In the training phase, J48 with confidence factor of 50% attained the highest classification accuracy (76.85%), k-nearest neighbors (k-NN) 3 the highest (78.38%) in IBk variants, naïve Bayes has a classification accuracy of 76.65%, and logistic has 77.31% classification accuracy. k-NN 3 and logistic have the highest classification accuracy, F-measures, and kappa statistics. Implementation of these algorithms to the test set yielded 48 non-defaulters and 52 defaulters for k-NN 3 while 44 non-defaulters and 56 defaulters under logistic. Implications were discussed in the paper.
Influence of Interest Rate, Location, Services and Credit Procedures to Decis...QUESTJOURNAL
ABSTRACT: The purpose of this study is to determine the Influence of Interest Rates, Location, Service and Procedure Credit Against Decision Making Credit at Bank Sulselbar Makassar Branch. The population in this study were customers in the last year in April 2012 until April 2013 At Bank Sulselbar Makassar Branch with the number of samples of 80 people. Methods in collecting data in this study are questionnaires, interviews, and documentation. The method of data analysis using descriptive method and quantitative method that is by multiple linear regression analysis used to measure the Influence of Interest Rate, Location, Service and Credit Procedure To Decision Of Taking Credit At Bank Sulselbar Makassar Branch. Based on the F test of independent variables (interest rates, location, service and credit procedures) together have a positive and significant effect on the dependent variable that is the decision to take credit. By testing the correlation coefficient (R) obtained that the level of correlation or relationship between Interest Rates, Location, Service and Procedure Credit Against Decision Making Credit at Bank Sulselbar Makassar Branch is a high relationship that is 61.8%. And the rate of interest is the most dominant factor influencing Decision Making Sulselbar Credit Bank Branch In Makassar.
How analytical hierarchy process prioritizing internet banking influencing fa...IJECEIAES
Internet banking is a method for conducting financial transactions online that makes use of the internet as a platform. Customers could transact at any time and from any location. Numerous aspects relating to the adoption of internet banking have been analyzed and studied in recent in-depth studies from the literature. This paper will merge these numerous predefined factors into a model by drawing on the various ideas related to the acceptance model. It was decided to adapt the analytical hierarchy process (AHP) method for finding the important numerous components for the model. The finest mathematical calculation method is AHP, which enables decision-makers to prioritize their ranking in order to satisfy various criteria. The goal of this research is to rank the elements that influence the use of online banking. Three main factors such as technical information, website and service availability were chosen as the main factors of the model based on the literature review. Sub-factors such as ease of use, responsiveness, privacy, reliability, security, communication and efficiency were also suggested and combined into a single integrated framework. Utilizing the systematic literature review (SLR) methodology, several factors were found. As a result, the article will enhance understanding of the unique elements supporting the adoption of internet banking.
This research aims to identify and analyze the effect of Capital Adequacy Ratio (CAR), Operation Expense (BOPO), Net Interest Margin (NIM), and Non Performing Loan (NPL) of the Loan to Deposit Ratio (LDR) of conventional bank on the Indonesia Stock Exchange period 2012 – 2017, either simultaneously or partially. Independent variables used in this study is CAR, BOPO, NIM and NPL, while LDR as the dependent variable.The population in this research is conventional bank listed on the Indonesia Stock Exchange. The sampling technique in this research is purposive sampling. The number of samples in accordance with the prescribed criteria are as many as 35 samples. Based on the result of the research found that the variable CAR influences negatively insignificantly toward LDR, BOPO and NIM influences positively insignificantly toward LDR, while the variable NPL influences positively significantly toward CAR. But simultaneously CAR, BOPO, NIM, and NPL jointly affect the LDR.
Customer and Stakeholder Perspective using Analytical Hierarchy Process Metho...sececonf
The measurement of the higher education
performance is a complex issue and becoming
increasingly important. Currently, performance
measurements have been changed. It is no longer
evaluated from the classical financial indicators.
Instead, the customer satisfaction has been proposed
as the basis for a ‘management strategic’ within
organizational. This paper presents performance
measurement at the higher education concerning in
customers and stakeholders’ perspective using the
Analytic Hierarchy Process (AHP) method. AHP is a
quantitative method which can deal with complicated
decision-making problem for evaluation. Total of four
main criteria and 26 sub-criteria were identified as
significant to the customers and stakeholders’
perspective. This empirically finding is suggested to
be a good performance measurement for solving the
problem multi criteria and contributes strategic goal
in higher education.
Keywords— Analytic Hierarchy Process (AHP),
Performance Measurement, Customer and Stakeholders
Perspective
Consumer Credit Scoring Using Logistic Regression and Random ForestHirak Sen Roy
Project Details: In this study, the concept and application of credit scoring in a German banking environment is
explained. A credit scoring model has been developed using logistic regression and random forest. Limitations of
the model are explained and possible solutions are given with an overview of LASSO.
Guide: Dr. Sibnarayan Guria, Associate Professor and Head of the Department, Department of
Statistics, West Bengal State University
Language Used: R
Purchase Decision Analysis Marketing Mix (Case Study Mandiri E-Cash Transacti...inventionjournals
PT. Bank Mandiri experiencing some problems that the level of use of Mandiri e-Cash Registered and Unregistered who have too big difference. The problems are caused by factors of product, price, promotion, distribution channels in the decision Mandiri e-Cash. This study aims to determine the effect of marketing mix on purchase decisions in Mandiri e-Cash Transaction Banking Retail Group. The study used quantitative methods using a type of survey, data collection methods with questionnaires. The population in this study are all users of Mandirie-Cash both Registered and Unregistered much as 302.435 which consists of the Mandiri e-Cash Registered and Unregistered 36.462 and 265.973 number. Probability sampling technique with Slovin formula obtained a sample of 399.39 or 400 respondents. Data were analyzed using SEM (The Structural Equation Model). The results showed that the products and distribution channels are not significantly influence the purchasing decision. Prices and promotions influence on purchase decisions Mandiri e-Cash.
# Project 03 - Data Mining on Financial Data
In this project, various models like Logistic Regression, KNN, SVM, and Random Forest have been applied to three finance-related datasets in order to discover the insights from the datasets. The methods will be applied to the datasets in R studio and corresponding outputs will be shown in this paper. Then the applied methods will be compared with each other to identify how well the method is performing on each of the datasets and then finally the better method will be chosen for each of the datasets. The methods were explained in detail along with their advantages with the help of the information from the relevant papers. Every method which has been applied to the datasets has been confirmed whether it follows the data mining methodologies. Data mining methodologies like CRISP-DM, KDD and SEMMA will also be explained in detail via this paper. The process flow of the data mining methodologies will be explained and also will be made sure that whether the process flow has been followed while applying each method on the datasets. Data mining is now considered as a major factor in the risk management process of financial institutions. Even though various data mining tools are existing in the market, this paper allows readers to understand how the algorithm works on the dataset and how to justify whether an algorithm’s prediction.
DEVELOPING PREDICTION MODEL OF LOAN RISK IN BANKS USING DATA MINING mlaij
Nowadays, There are many risks related to bank loans, for the bank and for those who get the loans. The
analysis of risk in bank loans need understanding what is the meaning of risk. In addition, the number of
transactions in banking sector is rapidly growing and huge data volumes are available which represent
the customers behavior and the risks around loan are increased. Data Mining is one of the most motivating
and vital area of research with the aim of extracting information from tremendous amount of accumulated
data sets. In this paper a new model for classifying loan risk in banking sector by using data mining. The
model has been built using data form banking sector to predict the status of loans. Three algorithms have
been used to build the proposed model: j48, bayesNet and naiveBayes. By using Weka application, the
model has been implemented and tested. The results has been discussed and a full comparison between
algorithms was conducted. J48 was selected as best algorithm based on accuracy.
6
Interim Report
Keisha Wisher
Wilmington University
May 31, 2017
Interim Report
Background
The problem facing the CMS Bank is the acquisition of automated communication software to reach its clients at the most timely speed possible. The history of the issue arises from the recent financial crises that saw millions of investors in the mutual funds and other financial organizations institutions. The problem emerged from the failure of the investors in the financial sector to have accurate and timely information that could have helped them to make alternative investments. The loss heightened the investors’ fear of investing in a given mutual fund company that does not inform its investors sufficiently on the market trends that might expose them to financial losses. Thus, CMS Bank as a mutual fund company is considering acquiring communication software to resolve this problem of communicating with the clients sufficiently. Similar acquisition problems have been faced by the organization in the past that have proved successful. The capital budgeting process that has been used in the past decision-making process has been effective in helping the organization to make the optimal decision.
The problem of buying the best communication software has impacted diverse stakeholders. One of the stakeholders to be affected is the project manager since he will be responsible for ultimate decision adopted. Thus, he is concerned with ensuring the decision undertaken is the optimal option. The second stakeholder affected by the problem is the finance officer because he is responsible for evaluating the financial viability of the diverse acquisition alternatives in advising the project manager. Consequently, the finance officer must be diligent in the evaluation measures to ensure the right results have arrived under the evaluation considerations. The information and communication commissioner of the organization is also a stakeholder affected by the problem resolution. The information and communication technician will be responsible for advising the team on the various technical dimensions of the communication system. Thus, the technician will be concerned with the value of the technical assistance given in allowing the team to make an informed choice. Finally, the Chief Executive Officer of the CMS Bank is another stakeholder affected by the problem. The CEO is answerable to the investors and owners on the efficiency communication system that will be acquired. Accordingly, the CEO will be concerned with ensuring that the team assigned in resolving the problem is competent and trustworthy in delivering value to the investors and shareholders.
Problem Statement
CMS Bank management has considered the problem is determining the optimal communication system in reaching the clients at the timely speed possible. Thus, the problem focuses on determining the system that will deliver messages efficiently to the customers at a lower cost compared to the cur.
Injection Analysis of Hera And Betano New Power Plants At the Interconnection...IJRESJOURNAL
ABSTRACT: Electricity system in Timor Leste is supplied from small scale Diesel Power Plants (DPP) which are distributed at each district that not interconnected, as the consequences, electric continuity at some districts are disturbed so caused power outage. To overcome the matters, the steps taken by Timor Leste government by establishing 2 units of centered DPP with total capacity of 250 MW at Dili District of 120 MW and at BetanoDistrict of 130 MW. The new power plant will be injected at the electricity system of Timor Leste through transmission line of 150 kV. The new power plant injection will cause the power flow and system stability of Timor Leste entirely. Steady state analysis done including the power flow analysis before and after injection of DPP of Hera and Betano so can be seen the voltage profile change and the decrease of electric power losses. Beside the steady state analysis, also done the power system stability analysis to know whether the system can operate normally after short circuit disturbance of three phases before and after new DPP injection. The steady state analysis showed that the system voltage condition before injection of DPP of Hera and Betano experience decrease of -13% from the sending voltage, and the active power losses of 6.8%. After DPP of Hera and Betano injection the decrease only -6% and active power losses can be minimized become 5.3%. The results of power system stability showed the rotor angle stability, frequency and voltage stability during disturbance occurrence become more stable after injection with recovery time faster if compared with before injection of new power plant.
Harmonic AnalysisofDistribution System Due to Embedded Generation InjectionIJRESJOURNAL
ABSTRACT:The increased demand for electricity and the depletion of fossil energy sources are a challenge to exploit new and renewable energy sources. Relatively cheap renewable energy sources are Wind Power Plant (WPP) and Photovoltaic System (PV). Currently, many small scale generating plants are being evolved into conventional systems known as Embedded Generation (EG). EG as a source of electricity in the distribution system will affect the flow of system power, system reliability, voltage profile and others. Besides, with the placement of converter technology in WPP and PV system will give contribution of harmonic enhancement to the system. This paper presents the harmonic analysis of WPP and PV designs that are injected into conventional distribution system in one bus at Pujon feeder station Malang, Indonesia. The bus is chosen because in this area the need for electric power in the area is very high and the existing system has a harmonic value of 11%. Hybrid Active Filter (HAF) is designed to lower the voltage harmonics due to EG injection into existing systems without affecting harmonics in other buses. To analyze the harmonics in this study there are 4 scenarios offered: Scenario 1 starts with analysis on existing system, scenario 2 existing in WPP 2 MVA injection, scenario 3, injection1.3 MVA PV, scenario 4 injected EG (WPP and PV). The simulation result using PSCAD 4.5 shows in scenario 4 to generate harmonic voltage of 18.6% and after added with HAF, the harmonic value of the voltage becomes 2.434%
Decision Support System Implementation for Candidate Selection of the Head of...IJRESJOURNAL
ABSTRACT: One of agency under the subdivision of The Indonesian National Army is Bintaldam V Brawijaya, acts as the mental founding agency. The head of affairs position replacement is often occurred in this agency, but the positions currently have a large number of incompetence person in charge. Subjection inthe election process leads to the inaccurate placement, resulting in poor leadership. The process of head of affairs assignment starts from candidates dispatching from each head of administrative section. Those candidates must then meet the three elements of assessment, i.e. the personality element, qualification element, and potential element. The candidates will be selected by head of agency as the top leader in the agency. The head of agency, however, poses difficulties to determine which candidate to put into position, frequently because of no proportional system exists to provide assistance in decision making process. A method is needed tomake more accurate placement for better leadership result.This research utilizegroup technology as the assessment elements hierarchical data structure and decision table as the rule evaluation engine to form a decision support system for making the replacement process of the heads of affairs easier and more accurate.
Yield Forecasting to Sustain the Agricultural Transportation UnderStochastic ...IJRESJOURNAL
ABSTRACT: Agricultural transportation is a major part of the United States’ transportation systems. This system follows a complex multimodal network consisting of highway, railway, and waterways which are mostly based on the yield of the agricultural commodities and their market values. The yield of agricultural commodities is dependent on stochastic environment such as weather conditions, rainfall, soil type and natural disasters. Different techniques such as leaf growth index, Normalized Difference Vegetation Index (NDVI), and regression analysis are used to forecast the yield for the end of harvest season. The yield forecasting techniques are used to predict the agricultural transportation needs and improve the cost minimization. This study provides a model for yield forecasting using NDVI data, Geographical Information System (GIS), and statistical analysis. A case study is presented to demonstrate this model with a novel tool for collecting NDVI data.
Injection Analysis of 5 Mwp Photovoltaic Power Plant on 20 Kv Distribution Ne...IJRESJOURNAL
ABSTRACT : A new 5 MWp PLTS or PV has been built in Oelpuah Village, Kupang Tengah. According to PT. PLN NTT,the amount of injected power to the distribution network cannot reach its maximum capability. At the moment, the average value of injected active power is 2 MWp. In this paper, a solution to achieve maximum injected power will be discussed. As a result of the study, the main problem is absence of energy storage. It cause the output power of the PV strongly affected by the weather. Hence a fluctuation of generated power cannot be avoided. The frequency in the distribution network system can be easily increased or decreased. Sudden drop in frequency due to 5 MWp lost, will cause the frequency to decrease beyond the standard value. The under frequency relay trips because it takes a long time to return to the originalvalue. A 5% of droop setting value is not suitable with those conditions. The droop characteristic setting should be reduced to 1% as a proposed solution. So that the response to frequency changes is more sensitive
Developing A Prediction Model for Tensile Elastic Modulus of Steel Fiber – Ce...IJRESJOURNAL
ABSTRACT: This paper attempts to develop a prediction model that can be used in line with prescribed laboratory experiments for indirect tensile test such that tensile elastic modulus can be predicted for cement stabilized lateritic soil reinforced with steel fiber using measured properties of the material. The results of the tensile elastic modulus obtained from the Derived Prediction Model almost nearly replicates that obtained from calculations from laboratory experimentation. Results obtained revealed that both the predicted values and calculated values have a linear correlation with an R2 of 96.4%. On this basis the Derived Prediction Model can be said to be valid within the limits of the study.
Effect of Liquid Viscosity on Sloshing in A Rectangular TankIJRESJOURNAL
ABSTRACT : Liquid sloshing was investigated for a moving partially filled rectangular tank with/without vertical baffles. A set of experiments was conducted using two types of liquids: water and sunflower oil. For these liquids, the effects of varying the external excitation amplitude and the number of vertical baffles on sloshing are discussed. It was found that the mechanical dissipation due to the liquid viscosity has a remarkable influence on the sloshing characteristics
Investigations on The Effects of Different Heat Transfer Coefficients in The ...IJRESJOURNAL
ABSTRACT: In the metal machining, the cutting fluid has become a tough problem in term of the health of works and environmental protection. The heat transfer coefficients of the water-based fluid, mineral oil and plant oil are distinct. An investigation focused on the effects of different heat transfer coefficients (h) on the cutting thickness compression ratio, chip formation, stress distribution and specific cutting energy is presented and discussed. In this study, three heat transfer coefficients have been simulated by Third WaveAdvantedge in machining AISI 1045 steel during different cutting speeds.It has been shown that the Mises stress and temperature are both affected by the heat transfer coefficient. When the h reaches higher, the Mises stress increases and the temperature shows the opposite trend. Also, the results can be found that the chip compression ratio decreases and shear angle increases when hrises. The relationship between specific cutting energy and heat transfer coefficients can be found in this paper.
Strategy of Adaptation of Traditional House Architecture Bali AgaIJRESJOURNAL
ABSTRACT : Adaptation is defined as a change to adapt to the environment or change the environment to fit the need to achieve balance. The Bali Aga community in Pengotan village has a tradition of building a house that refers to the concept of Tri Angga based on the Tri Hita Karana philosophy which is an expression of harmony with God, with human beings, and with the natural surroundings. Each element and layout of the building represents the alignment. In line with the development of the era, the pattern of community life changed resulting in traditional buildings are very regular and uniforms individually undergo a process of change without leaving the concept of Tri Angga and the philosophy of Tri Hita Karana.This paper is the result of field research that examines building changes by taking the example of traditional homes that undergo many changes to be able to conclude how traditional value changes occur in the original house.The results indicate that the change occurred partly due to the personal tastes of its inhabitants without the loss of fundamental changes in their philosophical value.Changes are found in non-structural building components and are strongly influenced by the ease of implementation of construction aspects. The building facade is striking with the appearance of ornaments on traditional buildings previously unknown in Pengotan
Design of Universal Measuring Equipment for Bogie FrameIJRESJOURNAL
ABSTRACT: The performance parameters of the bogie which directly affect the quality and safety of train operation should be detected during maintenance, especially the structure parameters of bogie frame after many operation years. Based on the related research of the bogie frame measuring requirement, a universal measuring equipment is designed for metro overhaul. The function, basic principle, structure and software design of the universal measuring equipment for bogie frame parameters are described, and the summary meanwhile prospect are given.
A Design Of Omni-Directional Mobile Robot Based On Mecanum WheelsIJRESJOURNAL
ABSTRACT:As one of the important branch of mobile robotics, wheel mobile robot has long been paid atten tion to by the research people at home and abroad for its high load ability, positioning accuracy, high efficiency, simple control, etc. Mobile robot has close relation to many technologies suc-h as control theory, computer tech nology, sensor technology, etc. Therefore, research on the mobile robot has important significance
An Investigation Into The Prevalence of Code Switching in the Teaching of Nat...IJRESJOURNAL
ABSTRACT: This study examines the functions of code-switching in primary schools by science teachers. In Namibia,English is the official language of instruction for science at primary school. At lower primary, Silozi is the language of instruction. Classroom interaction data was obtained from two science lessons. Analysis of the teachers' code-switching shows that code-switching in the two lessons was vastly different, with little codeswitching in the teacher-facilitated lesson.Evident in other lessons, in which science was taught as a content subjectbut with abstract names that had no corresponding local names in Silozi, there was frequent use of codeswitching for reiteration and message qualification. The direction of the language switch from Silozi to English as well as the proportion of teachersspeaking in English suggests that the official language for teaching is English at upper primary, grade 4 to 7. The science lesson and code-switching is a necessary tool for teachers to achieve teaching goals in content-based lessons involving students who lack proficiency in the instructional language. The study was conducted in five government primary schools in Katima Mulilo, the capital of the Zambezi region in Namibia.The national language is English language, with no exception inscience, mathematics, and language subjects.All Schools are located in a Katima Mulilo-urban. The students are from mixed classes, lower, middle and upper class families with their parents typically working as unemployed single mothers, domestic workers, clerks, nurses, teachers, and accountants. Some of the students could understand English because of their parents‟ educational background or in instances where English is spoken at home.
The Filling Up of Yogyakarta Governor Position in Social Harmony PerspectiveIJRESJOURNAL
ABSTRACT: This paper aims to provide an overview in filling up the position of Governor of Yogyakarta, Distinctive Region, Indonesia, that considering social harmony perspective. Discussion conducts using social harmony perspectives, because the Sultan as the King was suspected to devise making her daughter the Queen who will be automatically the Governor succeeding him. This paper based on sociology legal research, this study approached the legal issues in accordance with the fact in social life, to provide an overview existing condition rules and public perseptions in filling position of Governor of Yogyakarta, especially about gender (female) position. Dataas are collected by interviewed and distributed questionnaires to various groups. Considering the result of research, that the Sultan’s way generated a sufficiently deep polemics in the Palace environment, government and society, so that this even kept away from the customary values of Javanese custom and Islam religion emphasizing on social harmony.
Quality Function Deployment And Proactive Quality Techniques Applied to Unive...IJRESJOURNAL
ABSTRACT: Lecturing and instruction to students at university has traditionally been based on qualifications, experience and position of academics within ones department or college. The higher the level and more advanced the subject then the most experienced lecturers are traditionally selected for that task. Visiting lecturers are never asked to teach basic mathematics or science, they are to share their experience and enlighten the students from a vast knowledge and history. This paper reviews and discusses Kano’s model with Quality Function Deployment related to customer satisfaction and compares if the traditional approach is in keeping with university practice. Furthermore, it argues that industry has concepts and ideas that can be more proactive if applied to an educational environment where students’ demands are ever increasing and their expectations are becoming higher. If universities are to improve student-learning experiences then novel and successful techniques are needed. One such approach is discussed in this research paper to find better ways to improve student satisfaction.
The Analysis And Perspective on Development of Chinese Automotive Heavy-Duty ...IJRESJOURNAL
ABSTRACT: In recent years, under the influence of both China's domestic market demand and emissions standard improvement, Chinese manufacturers put great effort on the research and design of automotive heavy-duty diesel engine. This paper analyzes the technical parameters of heavy duty diesel engine in 11 / 13L displacement section and introduces its performance. At the same time, combined with the development of foreign heavy-duty diesel engine, the future development direction of Chinese heavy-duty diesel engine is forecasted.
Research on the Bottom Software of Electronic Control System in Automobile El...IJRESJOURNAL
ABSTRACT: With the development of science and technology, car replacement faster and faster. The development of the automotive industry has a contradiction, on the one hand, the speed of upgrading the car technology can not keep up with the speed of the performance requirements of the car, on the other hand, the country's automobile exhaust emission standards become more stringent. In addition, the depletion of oil resources led to the rise in gasoline prices, the traditional car is facing a crisis. Considering the situation of gas fuel resource structure and supply situation in China, it is feasible to promote gas fuel engine[1].However, the pollution caused by the car has become one of the major pollution sources in the urban environment and the atmospheric environment, and this trend continues to deteriorate[2].Therefore, alternative energy vehicles and hybrid cars is the main direction of development, and any improvement in the car will be car electronics and software replacement for the premise. On the one hand, natural gas as an alternative to gasoline, with its low prices, excellent combustion emissions, the relative sustainable development and other characteristics of more and more car manufacturers favor;On the other hand, the mainstream of the automotive electronic control unit ECU software development to AUTOSAR structure, low power consumption, functional safety for the development direction. Based on the actual development of natural gas engine control unit, the structure and function of ECU software are studied with reference to AUTOSAR software design standard. This paper studies the structure of the application of the software layer of the electronic control system and the main control strategy under the various conditions of the structure, and puts forward the underlying software resources needed by the application layer software. This paper analyzes the internal and peripheral resources of Infineon XC2785x microcontroller and designs hardware abstraction layer software and ECU abstraction layer software. The current characteristics of the jet valve driven by the natural gas multi-point injection engine were investigated. Automotive electronics technology has been widely used in modern vehicles which, and gradually become the development of new models, improve the performance of the key technical factors[3] .
Risk Based Underwater Inspection (RBUI) For Existing Fixed Platforms In Indon...IJRESJOURNAL
Abstract For existing fixed platforms in Indonesian waters, a method to determine underwater inspection basedon the risk level is needed as an alternative for the conventional time-based underwater inspection. This paper discusses the development of Risk Based Underwater Inspection (RBUI) for Indonesian fixed offshore platforms by adopting the inspection scope from API RP 2A-WSD and API RP 2SIM. The risk will be determined based on the calculated Consequence of Failure (CoF) and Probability of Failure (PoF), and then it will be converted into a relevant inspection interval according to the references. In addition, it had also been discovered that the minimum fatigue of a platform that is shorter than the intended design life appeared to be the major problem of the Indonesian existing platforms. Therefore, this condition would be taken into consideration as a factor to override the preliminary inspection interval plan. Sample of 10 platform data located in Indonesian waters were used for RBUI analysis in this paper.
ABSTRACT: In order to achieve the precise control of the four rotorcraft, we must first obtain the accurate mathematical model of the four rotorcraft.This study analyzes the mechanical structure of the four rotorcraft and ignores the effects of the corresponding air resistance and the associated external secondary factors.The actual environment of the four rotorcraft is simplified, and the main factors of the four rotorcraft in motion are seized to establish a more accurate mathematical model.In the modeling process four-rotor aircraft, using the most current hot research field research methods.Mode using the angular velocity and the linear velocity of the separated solver and attitude by the coordinate transformation, and motion Newton Euler's formula to solve.Thereby establishing a nonlinear dynamic model four-rotor aircraft.Finally, a simplified mathematical model of four rotorcraft is obtained by comprehensive analysis of the relevant constraints of mathematical model of four rotorcraft.This makes the accuracy of the model aircraft system higher, more convenient control four rotorcraft.Which has certain reference value and guiding significance for the study of future stability of aircraft system.
A New Approach on Proportional Fuzzy Likelihood Ratio orderings of Triangular...IJRESJOURNAL
ABSTRACT: In this chapter, we introduce a new approach on the concept of proportional fuzzy likelihood ratio orderings, increasing and decreasing proportional fuzzy likelihood ratio orderings of triangular fuzzy random variables are presented. Based on these orderings, some theorems are also established.
Implementation of Fan6982 Single Phase Apfc with Analog ControllerIJRESJOURNAL
ABSTRACT:Active power factor orrection technique can improve the input power factor and reduce the harmonic component of the input current. In small power applications, the single-phase active power factor correction circuit of high frequency switching (APFC), reduction of the boost inductance decreases the boost inductor and filter capacitor volume, reducing the net side current ripple, improve efficiency. On the basis of describing the principle of single-phase single-stage boost APFC double closed loop control, a new duty cycle compensation method is proposed, which is based on the FAN6982 simulation and the single phase APFC of the rated output power 500W is achieved. The results show that the effect of current ripple rejection is obvious, and the input current is consistent with the input voltage phase.
Water scarcity is the lack of fresh water resources to meet the standard water demand. There are two type of water scarcity. One is physical. The other is economic water scarcity.
About
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
Technical Specifications
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
Key Features
Indigenized remote control interface card suitable for MAFI system CCR equipment. Compatible for IDM8000 CCR. Backplane mounted serial and TCP/Ethernet communication module for CCR remote access. IDM 8000 CCR remote control on serial and TCP protocol.
• Remote control: Parallel or serial interface
• Compatible with MAFI CCR system
• Copatiable with IDM8000 CCR
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
Application
• Remote control: Parallel or serial interface.
• Compatible with MAFI CCR system.
• Compatible with IDM8000 CCR.
• Compatible with Backplane mount serial communication.
• Compatible with commercial and Defence aviation CCR system.
• Remote control system for accessing CCR and allied system over serial or TCP.
• Indigenized local Support/presence in India.
• Easy in configuration using DIP switches.
Courier management system project report.pdfKamal Acharya
It is now-a-days very important for the people to send or receive articles like imported furniture, electronic items, gifts, business goods and the like. People depend vastly on different transport systems which mostly use the manual way of receiving and delivering the articles. There is no way to track the articles till they are received and there is no way to let the customer know what happened in transit, once he booked some articles. In such a situation, we need a system which completely computerizes the cargo activities including time to time tracking of the articles sent. This need is fulfilled by Courier Management System software which is online software for the cargo management people that enables them to receive the goods from a source and send them to a required destination and track their status from time to time.
Cosmetic shop management system project report.pdfKamal Acharya
Buying new cosmetic products is difficult. It can even be scary for those who have sensitive skin and are prone to skin trouble. The information needed to alleviate this problem is on the back of each product, but it's thought to interpret those ingredient lists unless you have a background in chemistry.
Instead of buying and hoping for the best, we can use data science to help us predict which products may be good fits for us. It includes various function programs to do the above mentioned tasks.
Data file handling has been effectively used in the program.
The automated cosmetic shop management system should deal with the automation of general workflow and administration process of the shop. The main processes of the system focus on customer's request where the system is able to search the most appropriate products and deliver it to the customers. It should help the employees to quickly identify the list of cosmetic product that have reached the minimum quantity and also keep a track of expired date for each cosmetic product. It should help the employees to find the rack number in which the product is placed.It is also Faster and more efficient way.
Final project report on grocery store management system..pdfKamal Acharya
In today’s fast-changing business environment, it’s extremely important to be able to respond to client needs in the most effective and timely manner. If your customers wish to see your business online and have instant access to your products or services.
Online Grocery Store is an e-commerce website, which retails various grocery products. This project allows viewing various products available enables registered users to purchase desired products instantly using Paytm, UPI payment processor (Instant Pay) and also can place order by using Cash on Delivery (Pay Later) option. This project provides an easy access to Administrators and Managers to view orders placed using Pay Later and Instant Pay options.
In order to develop an e-commerce website, a number of Technologies must be studied and understood. These include multi-tiered architecture, server and client-side scripting techniques, implementation technologies, programming language (such as PHP, HTML, CSS, JavaScript) and MySQL relational databases. This is a project with the objective to develop a basic website where a consumer is provided with a shopping cart website and also to know about the technologies used to develop such a website.
This document will discuss each of the underlying technologies to create and implement an e- commerce website.
CFD Simulation of By-pass Flow in a HRSG module by R&R Consult.pptxR&R Consult
CFD analysis is incredibly effective at solving mysteries and improving the performance of complex systems!
Here's a great example: At a large natural gas-fired power plant, where they use waste heat to generate steam and energy, they were puzzled that their boiler wasn't producing as much steam as expected.
R&R and Tetra Engineering Group Inc. were asked to solve the issue with reduced steam production.
An inspection had shown that a significant amount of hot flue gas was bypassing the boiler tubes, where the heat was supposed to be transferred.
R&R Consult conducted a CFD analysis, which revealed that 6.3% of the flue gas was bypassing the boiler tubes without transferring heat. The analysis also showed that the flue gas was instead being directed along the sides of the boiler and between the modules that were supposed to capture the heat. This was the cause of the reduced performance.
Based on our results, Tetra Engineering installed covering plates to reduce the bypass flow. This improved the boiler's performance and increased electricity production.
It is always satisfying when we can help solve complex challenges like this. Do your systems also need a check-up or optimization? Give us a call!
Work done in cooperation with James Malloy and David Moelling from Tetra Engineering.
More examples of our work https://www.r-r-consult.dk/en/cases-en/
Event Management System Vb Net Project Report.pdfKamal Acharya
In present era, the scopes of information technology growing with a very fast .We do not see any are untouched from this industry. The scope of information technology has become wider includes: Business and industry. Household Business, Communication, Education, Entertainment, Science, Medicine, Engineering, Distance Learning, Weather Forecasting. Carrier Searching and so on.
My project named “Event Management System” is software that store and maintained all events coordinated in college. It also helpful to print related reports. My project will help to record the events coordinated by faculties with their Name, Event subject, date & details in an efficient & effective ways.
In my system we have to make a system by which a user can record all events coordinated by a particular faculty. In our proposed system some more featured are added which differs it from the existing system such as security.
Design and Implementation Decision Support System using MADM Methode for Bank Loans
1. International Journal of Research in Engineering and Science (IJRES)
ISSN (Online): 2320-9364, ISSN (Print): 2320-9356
www.ijres.org Volume 5 Issue 8 ǁ August. 2017 ǁ PP. 23-31
www.ijres.org 23 | Page
Design and Implementation Decision Support System using
MADM Methode for Bank Loans
*
Irfan Fauzi1
, Hadi Suyono2
, Rini Nur Hasanah3
1
(Faculty of Engineering, University of Brawijaya, Malang, Indonesia)
*Corresponding author**
Irfan Fauzi
ABSTRACT: The function of banking process can be broadly defined as an institution functioning as a capital
receiver and lender, as well as support for trading and payment transactions. In order to maintain the stability of
the economy through lending, Bank Indonesia issued a form letter on March 15, 2012 on the application of risk
management for the bank conducting credit. In an effort to minimize these problems, Bank Indonesia
recommends the precautionary principle in arranging the loan terms and choose the prospective customer in the
credit granting institutions, both banks and cooperatives to take into account the risk on lending. A method is
needed to select bank for credit applications to the public, i.e. the customer. This research uses the comparison
of MADM (Multiple Attribute Decision Making) between TOPSIS (Technique for Order Preference by
Similarity to Ideal Solution) method and ELECTRE (ELimination Et Choix TRaduisant la realitE) method for
the loan provisions to the customers. With the hope of getting the quickest and the most accurate solutions, the
hesitancy in determining customers for lending can then be minimized.
Keywords: MADM, TOPSIS, ELECTRE, Loans, Bank.
I. INTRODUCTION
Economic growth of a region can not be separated from the role of financial institutions or banks in an
effort to provide services to the community. According to Indonesian Banking Law number 10 of 1998, the
bank is a business entity that collects funds from the community and channeled back to the community in the
form of credit in order to improve the living standard. Thus, the function of the broader banking can be defined
as a functioning institution of the recipient and the lender, as well as the launching of trade and payment
transactions.In an effort to maintain the stability of the economy through this policy, Bank Indonesia issued a
circular on March 15, 2012 regarding the implementation of risk management at the bank conducting the credit.
Many institutions of both commercial bank and non-bank institutions issued credit policy to the public either in
the form of cash loans or credit cards. These cash loans are usually reserved for working capital, investment, and
consumption. As for credit card users, they are usually charged at the end of the usage period. With such a
crediting system, the problem of non-performing loans and unfavorable payments affecting the collectivity of
banks can not be avoided.
As an effort to minimize the problem, Bank Indonesia recommends prudential principles in regulating
credit requirements and selecting prospective customers in credit institutions, both banks and cooperatives by
taking into account the risks in lending. Based on information collected from banks, the current level of non-
performing loans has generally declined, but is still relatively as high as 2.15% from the previous year. This
does not include the effort of coercion of credit against SMEs (small and medium-sized enterprises) that greatly
trigger the occurrence of NPL (non perfoming loan) or bad debts in the banking, thus requiring careful selection
of SME credit to the community. In this case, marketings and surveyors play a very important role, since they
know the real situation of prospective customers down to the field. Marketings are employees assigned to offer
credit services to prospective customers, while surveyors are officers who conduct surveys on potential
customers, and both of them understand the real customers’ situation.
Therefore, a method for banking is required to select credit application to the customer. The loan
application is given on the basis of predetermined credit policy criteria in order to obtain the priority of the
customer to be given an optimal loan. This application can reduce the risk of bad debts and give benefit to both
parties. One of the DSS (decision support system) modeling used in decision making to establish the best
criteria from a number of alternatives based on certain criteria is MADM (Multiple-Attribute Decision Making).
This method is choosen mainly because the customer selection process dealed with various criteria and
subcriteria as foundation of loan applications.MADM is used to solve problems in discrete space, with several
methods that can be used in MADM, including SAW (Simple Additive Weighting), WP (Weighted Product),
ELECTRE (ELimination Et Choix Traduisant la Realité - ELimination and Choice Expressing REality),
TOPSIS (Technique for Order Preference by Similiarty to Ideal Solution), and AHP (Analytic Hierarchy
Process) [1].
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Suhud Wahyudi and his colleagues conducted research on DSS for customer selection using TOPSIS
method. However, the final result of this study shows only ranking of customer priorities, whereas credit criteria
and customer alternatives can not be determined [2].Setyawan and Teguh also conducted research on the DSS to
determine the creditworthiness of cooperatives using the ELECTRE method. The result of this study, however,
can not perform weighting of the processed multicriteria. Therefore it must be continued with other methods or
preprocessing for the calculation of the criterion weight [3].Based on some of the above research it is necessary
to conduct research and development of a DSS to overcome problem with many criteria and be able to give
weighting criteria. Therefore, it is necessary to implement MADM by giving comparison between TOPSIS and
ELECTRE and take some advantages of both methods.
II. THEORETICAL BASIS
A. Decision Support System
According to Daihani, decision is an alternative of action strategy [4]. While Kusrini said that the
decision is an activity to choose a strategy or action in solving a problem where the action aims to achieve a
certain target [5]. In the other word, the two experts above were formulating that decision-making is an action in
choosing a strategy that is believed will provide the best solution to something.Turban defines the DSS as a
system that serves to support decision makers (i.e. managers) in semi-structured decision situations, but not to
replace a manager's position in providing an assessment of the decision [6]. Meanwhile, according to Alter, DSS
is an interactive information system that provides information, modeling, and manipulation of data used to assist
decision making in semi-structured situations or unstructured situations (not replacing decision-making
functions in making decisions), when no one knows exactly how the decision should be made [7].
The main difference between the DSS and the MIS (Management Information System) is that the MIS
produces more routine and programmed information, while the DSS has been linked to a specific decision-
making process. One example of a DSS is a production scheduling system in a company which operates based
on orders. The purpose of DSS is to help managers make informed decisions to solve semi-structured problems,
and improve the effectiveness of managerial decision-making rather than efficiency.
B. Method of Software Engineering
Businesses which are related with software engineering can be categorized into three general phases
disregard the application area, project size, and complexity. These phases are as follows: the definition phase
focusing on "what", the development phase focuses on "how", and the maintenance phase focuses on "change"
[8].
C. Multiple Attribute Decision Making
MADM (Multiple Attribute Decision Making) is a model of MCDM (Multiple Criteria Decision
Making). MCDM is a method of decision making to establish the best alternative based on certain criteria.
Criteria are usually the sizes, rules, or standards used in decision making.
D. TOPSIS
TOPSIS stands for Technique for Order of Preference by Similarity to Ideal Solution. TOPSIS is one of
the MADM methods first introduced by Yoon and Hwang [9]. It uses the principle that the chosen alternative
must have the closest distance from the positive-ideal solution and furthest from the negative-ideal solution
utilizing a geometric point of view by using the Euclidean distance to determine the relative proximity of an
alternative with the optimal solution. The positive-ideal solution is defined as the sum of all the best attainable
values for each attribute, while the negative-ideal solution consists of all the worst values achieved for each
attribute, and TOPSIS considers both solutions.
The distance to the positive-ideal solution and the distance to the ideal solution is negative by taking
the proximity relative to the positive ideal solution. Based on a comparison of the relative distance, alternative
set of priorities can be achieved. This method is widely used to solve practical decision making. This is because
the concept is simple and easy to understand, computation-efficient, and has the ability to measure the relative
performance of decision alternatives in a simple mathematical form.
E. ELECTRE
The acronym ELECTRE stands for: ELimination Et Choix Traduisant la REalité (ELimination and
Choice Expressing REality). ELECTRE is one of the multicriteria decision-making methods based on the
concept of outranking by using pairwise comparisons of alternatives based on each appropriate criterion
[10].The ELECTRE method is used in conditions where alternatives that are less in line with the criteria are
eliminated. In other words, ELECTRE is used for cases with many alternatives but with few criteria involved.
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An alternative is said to dominate the other alternatives if one or more of the criteria exceeds (compared to the
criteria of the other alternatives) and equals the other remaining criteria [11].
F. MySQL 5.0
One of today popular RDBMS (Relational Database Management System) is MySQL. Its high speed,
ease of installation, as well as its licence under GNU General Public Licence, give rise to make MySQL an
option, especially if database publication over internet is needed. This research uses MySQL 5.0 as RDBMS
located in the cloud for accessibility. The cloud server in used is www.freemysqlhosting.net, which is a free
MySQL database hosting with certain limitations.
G. Borland Delphi 7.0
Borland Delphi 7 is a compiler using Object Pascal Language. It is event-driven and visual
programming based compiler designed for Microsoft Windows platform. Borland Delphi 7 was chosen because
it is the most stable version of Delphi but has a relatively small installation size, and is capable of running on
Microsoft Windows XP, Vista, 7, 8, and 10 operating systems.
III. METHOD OF RESEARCH
The type of this research is software engineering, with SDLC (System Development Life Cycle) is
used for development. The stages performed are as follows: design, analysis, design, testing, and
implementation.
System Development Flow
Data processing Analysis and Design SolutionData collection
START
Case Studies,
Identification and
Problem
Formulation
Data collection
Selection Criteria
and Sub Criteria
Analysis
Weighting, Priority
criteria and Sub
Criteria
ELECTRE
calculations
Loan Weighting
TOPSIS
calculations
Design and
Development of
Data base
System Analysis
Application Design
and Development
Conclusions and
recommendations
TESTING
Matching
Result ??
End
Fig. 1. Diagram of Research Method.
Based on Figure 1, the problem formulation model can be explained in several stages as follows:
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A. Case Study
As the first stage in this research, case study dictated the author conducted a field study by entering
field of study directly to Bank BNA Ngunut Arta Tulungagung. Direct observation and interviews are used with
the purpose of knowing the initial information about the criteria of a customer in taking loan procedure and
paying in installments to the bank.
B. Problem Identification and Formulation
After conducting preliminary research, the problems customers’ experienced can be then identified,
tracing back the root of the problem. All problems identified are then feed as input to be solved using both
TOPSIS and ELECTRE method.
C. Data Collection
The data needed in this research is the feasibility of a customer in applying for loan to the bank. These
data include customer identity, income, assurance, character, type of business, and the ability of banks in
providing loans. The data were obtained based on survey results or direct observation at Bank BNA Ngunut
Arta Tulungagung.
D. Data Processing
The data will be used in data processing which includes some activities as follows: Analysis and
Selection of Criteria and Sub Criteria; Weighing Priority Criteria; Weighing Criteria; And TOPSIS and
ELECTRE calculations.
E. System Analysis and Design
The purpose of this stage is to analyze the system to be developed in accordance with the needs of the
customers. Next will be known the specification of user needs and who will users of the system.
Start
Criteria
Using TOPSIS
Methode
Using ELECTRE Methode
The chosen
alternative is the
greatest value
END
Make a normalized decision
matrix
Define a positive ideal matrix
and a negative ideal matrix
Create a normalized
weighted decision matrix
Make a normalized decision
matrix
Weighting in a normalized
Matrix
Define corcodance and
discordance
Determine the distance
between the values of each
alternative
Create a normalized
weighted decision matrix
Rank alternatives
Calculate corcodance and
discordance
matrix
Specifies the preference
value
Determines the dominant
matrix
Determines Agregate
Dominance Matrix
Elimination of less favorable
alternatives
Fig. 2. Flowchart of TOPSIS and ELECTRE algorithm.
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F. Database Design and Development
Database is used as data storage of DSS. The database in this application uses MySQL which is an
open source RDBMS. The database structure is then uploaded to cloud server and tested for connection and
accessibility.
G. Application Design and Development
Applications developed will be Windows desktop-based. This application is expected to accommodate
lending process to customers by using TOPSIS and ELECTRE method. The application will be developed with
Borland Delphi 7 compiler.
H. Application Testing
Testing of the program would be made during the developing process and after the software
development. This test aims to find errors in the application that is there to then be done improvements after
analyzing the error.
II. CONCLUSIONS AND RECOMMENDATIONS
After completion of data processing and system design to minimize or overcome the existing problems,
the final step is to make a conclusion of the whole thesis done and suggestions or input from the managers and
stockholders of Bank BNA Ngunut Artha Tulungagung. The initial process undertaken in this software design is
TOPSIS process. It starts from making a normalized decision matrix based on the criteria of the prospective
customer. Then the matrix of tenorized decisions is given weight according to the criteria required by the bank.
From a matrix of normalized weighing decisions sought minimum and maximum values so that positive-ideal
solutions and negative-ideal solutions can be searched. After that, the positive-ideal solution and the negative-
ideal solution is obtained from the value of preference according to the equation. Finally, the system performs
the ranking based on the preference value of each prospective customer.
While the process undertaken by ELECTRE is initially determine the normalization of decision matrix
based on the criteria of the prospective customer. The system then performs the appropriate weighting required
by the bank. Next step was to determine the corcodance and discordance of the alternatives offered by the bank.
Subsequently corcodance and discordance are calculated to generate domain matrices which will ultimately
result in the elimination of alternatives based on ranking on the preferences of each potential customer, as
briefly seen in Figure 2.
IV. RESULTS AND DISCUSSIONS
The result of the research is about the concept of calculation step which is applied to DSS software
development, accompanied by the result of DSS software execution and test in case of data validation,
determination of validity of prospective customer, and result of DSS credit disbursement to all candidates to be
distributed in accordance with quota.
A. Determination of Criteria
From the variables in previous chapter, some criteria are specified in each of the global sections and
customer sections to match the characteristics of built software. The criteria of global section are the Conditions
of the Bank, which in the development of this software is defined as the quota of funds distributed to the
customers for loans. This quota of funds is planned every month to be distributed to prospective customers.
When the total funds are insufficient or failed to distribute to all prospective customers, it is in this section that
the established DSS plays an important role, selecting all potential customers who are eligible to find which one
is selected and which are not selected according to the criteria of each prospective customer. This criterion is not
a weighted criterion.
On the other side, criteria placed on the part of the customer include: Character, Lending Parameter,
Capacity, Capital, and Collateral. Character (sub-criteria in the form of: history, reputation, and business
legality) is a criterion that becomes one of the basic calculation of DSS. In this case there are still sub-criteria in
the form of: history; reputation; and business legality. Each is a sub-criteria of a boolean type (QUALIFIED or
UNQUALIFIED). Because there are 3 sub-criteria, then the QUALIFIED value for each sub-criterion is 1/3.
This criterion is the criterion which is one of the basic calculations of DSS, and the weight according to its
importance is 0.1.
Lending Parameters (sub-criteria: principal, interest rate, and period) are the second criterion. The
principal of the loan is not a sub-criterion on which the DSS is based, but is directly used to determine whether a
prospective customer can take the credit or not, by comparing it with 75% of the estimated value of collateral.
Similarly, interest rates and periods do not form the basis of DSS calculations, but indirectly determine the
amount of monthly installments.
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Capacity is a criterion that holds two roles at once, i.e. as a direct criterion used to determine whether a
prospective customer takes credit or not, by comparing it to the total monthly installment, which must be equal
to or greater than the total monthly installment (otherwise the prospective customer can not take a loan); And as
the basic criterion of the calculation of DSS with the value of monthly excess capacity to the installment load.
Inside the software, this criterion is automatically detected as an excess of monthly capability to the installment
load, and has a zero or more value to act as the basis of decision support, while negative value will cause the
prospective customer can not take the credit. The value of 0.4 is chosen as the weight of this excess capacity in
accordance with the highest degree of importance (whether each month the prospective customer is able to set
aside more outside the installment).Capital is a criterion that contains estimates of assets owned by prospective
customers outside of collateral. This criterion is one of the basic calculations of the DSS, which gives the
meaning of the bank's confidence about the condition of the prospective customer's wealth. The weight given
according to the scale of importance is 0.2.Finally, Collateral is a criterion that also has two roles at once. As a
direct criterion used determine the prospective customer can take credit or not, that is when 75% of its value (as
the value of collateral valuation) at least equal to the value of the ceiling or loan principal. Meanwhile, as the
criterion which is the basis of DSS calculation, is calculated as the excess of the principal amount of the loan.
The weighting of 0.3 indicates that the DSS relies heavily on this criterion (second order after excess capability)
which shows the value of secured collateral in the event of bad debt.
Table I. Weighting of each Criteria.
No. Criteria Description Weight
1 Character Holds 3 sub-criteria, i.e. history,
reputation, and business legality. Each of
them weights 1/3.
0.1
2 Capacity Based on capacity excess according to
monthly installment.
0.4
3 Capital Based on total asset possessed by
potential customer except his/her
collateral.
0.2
4 Collateral Based on excessive value of 75% of
collateral appraisal against loan principal.
0.3
Total of Weight 1.0
Table I shows the description and weight of each criterion. Each criterion, like the weighted sum, must
have a normalized value. Normalized values are required so that each criterion is consistent with each other by
its weighting. The value that appears will range from 0 to 1. In this case, the polarity value of each criterion is
already a benefit value, i.e. the greater the better, so there is no need to reverse the polarity of the value.
B. Normalization of Character Criterion
The assessment for this criterion is a combination of the three sub-criteria that compose it, namely
history, reputation, and business legality. Each of the sub-criterion is of type boolean, that is, only the value of
either TRUE or FALSE is permitted. Equation 1 shows the assessment of historical sub-criterion.
(1)
Whereas equation 2 shows the appraisal of reputation sub-criteria, and equation 3 shows the assessment
of the sub-criteria of business legality.
(2)
(3)
From all sub-criteria assessments, the three above are combined to produce an assessment of character
criterion, as shown in equation 4, in the form of normalized values.
(4)
C. Normalization of Capacity Criterion
Assessment for this criterion is actually an excess of the client's monthly capacity (income minus all
expenses before any credit taking) to the monthly installment (principal installment plus interest installment).
The minimum value is zero, where there is no advantage at all. If the value is negative, it is certain that the
prospective customer is considered unfit to take this credit, so before entering the process of calculating the DSS
is considered he/she would not be accepted as a candidate. For each criterion relating to money value, in order
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for the normalization significance to have an effect in accordance with current currency value conditions, the
nominal value is made in million rupiah.
(5)
Equation 5 shows the formula for normalized value of capacity excess.
D. Normalization of Capital Criterion
Assessment of these criterion is a wealth or assets owned by a prospective customer in addition to
wealth or assets that are mortgaged (collateral).
(6)
Equation 6 above shows the formula for normalized value of customer’s capital.
E. Normalization of Collateral Criterion
Assessment for this criterion is actually an excess of 75% of asset appraisal value by a prospective
customer against the loan principal. The minimum value is zero, where there is no advantage at all. If the value
is negative, it is certain that the prospective customer is considered unfit to take this credit, so before entering
the process of calculating the DSS is considered he/she would not be accepted as a candidate.
(7)
Equation 7 shows the formula for normalized value of 75 % collateral appraisal excess.
F. Calculation of The Weighted Value
The weighted value to be competed should be calculated based on the value of each normalized
criterion multiplied by each weight, as shown in Equation 8 through 11, and finally summed up.
(8)
(9)
(10)
(11)
Once all weigthed values of each criterion have been obtained, every result is then summed up as
shown in Equation 12.
(12)
G. Candidates Sorting based on their Weighted Value
After all candidates get the result of weighted value, then the next step is to sort based on the result of
weighted value in descending order. This sorting is done using the bubble sorting method, with the
consideration of the resulting performance unnecessarily high because of the limited number of candidates
under 1000 rows.
H. Distribution of Credit Quotas by Rank
After the list of candidates have been sequenced, system performs a looping to subtract the credit quota
by each candidate. This distribution is done by looping from the first position (from the candidate with the
greatest weighted result) to the next smaller position. Each time the existing quota loop is reduced by the loan
principal (ceiling) until the quota is running out or insufficient to be given to the candidate. Once the distribution
is complete there are two possibilities, i.e. the quota runs out or there will be quota remaining.
I. Implementation Result Of Decision Support System
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Fig. 3. Display Comparison Result of Decision Support System Using MADM Methode
Figure 3. has included comparison MADM Methode TOPSIS and ELECTRE where it was Consider
using between two MADMs is not much different when applied to relatively few data, with calculations using
ELECTRE slightly faster (1.281 second) Compared using TOPSIS (1.353 second).
V. CONCLUSION
Based on the test results it can be concluded as follows:
1. MADM by using TOPSIS and ELECTRE has been able to produce decision of credit distribution with certain
quota on candidates of customer.
2. By utilizing Borland Delphi 7 Compiler and MySQL 5.1 RDBMS, software can be developed which apply
TOPSIS and ELECTRE and produce DSS only with simple operation.
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*Irfan Fauzi. "Design and Implementation Decision Support System using MADM Methode for
Bank Loans ." International Journal of Research in Engineering and Science (IJRES) 5.8 (2017):
23-31.