Abstract:
Decision support systems are gaining an increased popularity in various
domains, including business, engineering, the military, and medicine. They are
especially valuable in situations in which the amount of available information is
prohibitive for the intuition of an unaided human decision maker and in which
precision and optimality are of importance.
Bank loan plays a vital role for enterprises and the decision making for
accepting or rejecting loan applicants is also important for banks. In order to achieve
loan from bank, the applicants need to fulfill the criteria. The pre selection and
analysis of loan applicants required to calculate some criteria according to
mathematical equation. The bank loan officer checked and calculated these criteria
manually. So, the analysis of criteria is time consuming, and a prior automated system
that can support decision requirements is needed to determine the loan applicants who
will receive or not receive the loan. One of the Decision Support System (DSS)
modeling used in decision making to establish the best criteria from a number of
alternatives based on certain criteria is Multi-Criteria Decision Making (MCDM).
This method is mainly chosen because the customer selection process deals with
various criteria and sub criteria as foundation of loan applications.
Among the MCDM methods, Technique for Order Preference by Similarity to
Ideal Solution (TOPSIS) is used in a decision support system to search the best loan
applicants because of its ability to recommend loan applicants from several variables
of applicants. TOPSIS can compute the advantage and disadvantage for several
criteria of customers to the decision maker. This system implemented the decision
support system for selecting the bank’s loan by using TOPSIS. This system will be
implemented using JAVA programming language with Microsoft SQL Server
database.
