Email this article Multi criteria decision making to determine the location of Via Laundry's branch
Abstract
Decision of choosing the right business location will determine the future development of the business itself. Location decision making is not only important in terms of costs and profits but is also one part of a company's strategic planning which is significant in increasing competitive advantage. Via Laundry’s owners has decided to open a new store branch to expand their business as it has been well-operated for 3 years. Business owners have determined several alternatives for this new branch’s location, namely Transpark Djuanda Bekasi, Jakarta Garden City, and Harapan Indah. The purpose of this study will help business owners to better decide preferred location for the new branch by using multi-criteria decision making, which is AHP and TOPSIS combined methods. Determination of criteria and alternatives is carried out based on the results of discussions with experts, namely business owners and their business partners. Experts also assess the importance of each criterion to produce a pairwise comparison matrix. Based on the results of calculations using the AHP method, priority vector values are obtained for the 6 criteria from the highest to the lowest weight, namely population density (0.370), water cleanliness (0.249), rental costs (0.131), land area (0.103), ease of access roads (0.093), and competitiveness level (0.054). Calculation using AHP method generate weight of each criterias which is then used in TOPSIS. By comparing the distance with ideal solution, preference value for each alternative can be obtained, namely 0.3053 for Jakarta Garden City, 0.3624 for Harapan Indah, and 0.8009 for Transpark Djuanda Bekasi. The chosen location recommendation for Via Laundry’s new branch is Transpark Djuanda Bekasi with the highest preference value of 0.8009.
Keywords
Full Text:
PDFReferences
Akincilar, A. & Dagdeviren, M. (2014), A Hybrid Multi-Criteria Decision Making Model to Evaluate Hotel Websites, International Journal of Hospitality Management, Vol. 36, pp. 263-271.
Ats-Tsauri, M. I., Iskandar, I., Siregar, B. R. (2022), Strategi Penentuan Supplier untuk Mitigasi Dampak Kenaikan Harga Bahan Baku pada Industri Manufaktur Baja Lapis Seng, Operations Excellence: Journal of Applied Industrial Engineering, Vol. 14, No. 1, pp. 1-11.
Azwir, H. H., Hasan, F., & Oemar, H. (2020), Supplier Selection of upper Arm and Lower Arm Pantograph Jack Using AHP and TOPSIS Methods, Jurnal Rekayasa Sistem Industri, Vol. 9, No. 1, pp. 1-10.
Druak, I., Arslan, H. M., Ozdemir, Y. (2021), Application of AHP-TOPSIS Methods in Technopark Selection of Technology Companies: Turkish Case, Technology Analysis & Strategic Management, Vol. 34, No. 10, pp. 1109-1123.
Fuskova, M., Hanáčková, D., & Gubáňová, M. (2018), Location Factors and Their Importance in Location Decision Making of Enterprises (In Conditions of Slovak Republic Case Study), Ekonomika Management Inovace (EMI), Vol. 10, No. 1, pp. 5-18.
Hakim, S. N., Putra, A. N. (2022), The Best Location Selection Using Analytical Hierarchy Process Method, International Journal of Industrial Optimization (IJIO), Vol. 3, No. 1, pp. 68-79.
Hanggita, A. T. (2018), Analisis Faktor Pemilihan Lokasi Usaha Jasa pada UMKM di Kecamatan Panciran, Jurnal Manajemen Bisnis,Vol. 8, No. 1, pp. 167-176.
Hanin, N., et al (2023), Implementation of AHP-TOPSIS as a Support for Making Decisions on Micro Business Funding in Sambas Regency, International Journal of Economics, Business, and Accounrint Research (IJEBAR), Vol. 7, No. 1, pp. 394-410.
Jatiningrum, W. S., et al (2022), Applying AHP-TOPSIS Approach for Selecting Marketplace based on Preferences of Generation Z in Yogyakarta, Indonesia, OPSI, Vol. 15, No. 1, pp. 107-115.
Khairunnisa, M. & Septiani, W. (2021), Pemilihan Lokasi Usaha DANI’S Auto Menggunakan Metode Pairwise Comparison dan Comparative Preference Index (CPI), Jurnal Penelitian dan Karya Ilmiah Lembaga Penelitian Universitas Trisakti, Vol 6, No.1, pp. 107-119.
Konstantinos, I., Georgios, T., & Garyfalos, A. (2019), A Decision Support System methodology for selecting wind farm installation locations using AHP and TOPSIS: Case study in Eastern Macedonia and Thrace region, Greece, Energy Policy, Vol. 132, pp. 232-246.
Lumenta, K. N., Gunawan, W. S. (2023), Analysis of 220 ml Cup Supplier Selection with AHP Method and Rating Scale: Case Sudy PT. Sabina Tirta Utama, Operations Excellence: Journal of Applied Industrial Engineering, Vol. 15, No. 2, pp. 164-174.
Maulana, S., Pasaribu, A. M., Septiani, W. (2022), Pemilihan Pemasok Baterai Forklift Elektrik dengan menggunakan Metode AHP dan TOPSIS di Industri Manufaktur Otomotif, Operations Excellence: Journal of Applied Industrial Engineering, Vol. 14., No. 3, pp. 261 – 270.
Mondal, T. K., Hussain, U., Ali, ,. I., Rahman, M. S. (2018), Facility Location Selection for Plastic Manufacturing Industry in Bangladesh by Using AHP Method, International Journal of Research in Industrial Engineering, Vol. 7, No. 3, pp. 307-319.
Muhammad, J., et al (2020), Pemilihan Supplier Biji Plastik dengan Metode Analytical Hierarchy Process (AHP) dan Technique for Order Preference by Similarity to Ideal Solution (TOPSIS), Jurnal INTECH Teknik Industri Universitas Serang Raya, Vol. 6, No. 2, pp. 99-106.
Önder, E. & Yaşlioğlu, M. M. (2016), Solving Facility Location Problem for a Plastic Good Manufacturing Company in Turkey Using AHP and TOPSIS Methods, Journal of Administrative Sciences, Vol. 14, No. 28, pp. 223-249.
Putri, S. R. (2021), Perbandingan Metode AHP dengan TOPSIS untuk Pemilihan Lokasi Gudang (Studi Kasus Gudang Sepatu Kulit), Scientia Sacra: Jurnal Sains, Teknologi dan Masyarakat, Vol. 1, No. 1, pp. 13-18.
Rahim, R. et al (2018), TOPSIS Method Application for Decision Support System in Internal Control for Selecting Best Employees, Journal of Physics: Conference Series 1208 012052.
Saaty, T. L. (1980), The Analytic Hierarchy Process, McGraw-Hill, New York.
Septiani, W. & Triwulandari, S.D. (2022), Analisis Keputusan: Teori dan Impelementasi, Nas Media Pustaka, Sulawesi Selatan.
Septiani, W. et al (2022), Pelatihan Pengambilan Keputusan pada Industri Komponen Otomotif di Jakarta Utara, Jurnal Abdi Masyarakat Indonesia (JAMIN), Vol.2, No. 2, pp. 145-154.
Singh, M., Singh., K, & Sethi, A. S. (2020), Analytical Hierarchy Process and TOPSIS for Selecting Best Parameter of Green Manufacturing, Measuring Business Excellence, Vol. 24, No. 23, pp. 345-365.
Sitania, F. D. (2022), Supplier Selection Using AHP and TOPSIS: A Case Study in the Bakery, International Conference for Tropical Studies and Its Applications (ICTROPS), Vol. 1, No. 1, pp. 1-10.
Sugiyanto, A. Y., Dewi, L. S.,& Arradya, M. A. (2023), Selection of the Best Location for Opening a Branch Office: a Case Study of Bank X, Operations Excellence: Journal of Applied Industrial Engineering, Vol. 15, No. 1, pp. 99-109.
Taherdoost, H. (2017), Decision Making Using the Analytic Hierarchy Process (AHP); A Step by Step Approach, International Journal of Economics and Management Systems, Vol. 2, pp. 244-246.
Tzeng, G. H. & Huang, J. J. (2011), Multiple Attribute Decision Making: Methods & Applications, CRC Press, Taylor & Francis Group, United States.
DOI: http://dx.doi.org/10.22441/oe.2024.v16.i1.099
Refbacks
Copyright (c) 2024 Operations Excellence: Journal of Applied Industrial Engineering
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Journal ISSN:
 | Print ISSN: 2085-4293 |
|---|---|
| Online ISSN: 2654-5799 |
Tim Editorial Office
Operations Excellence: Journal of Applied Industrial Engineering
Magister Teknik Industri Universitas Mercu Buana
Jl. Raya Meruya Selatan No. 1 Kembangan Jakarta Barat
Email: [[email protected]]
Website: http://publikasi.mercubuana.ac.id/index.php/oe
Journal DOI: 10.22441/oe
The Journal is Indexed and Journal List Title by:
.png)
.png)
.png)
Operations Excellence: Journal of Applied Industrial Engineering is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.