Multi criteria decision making to determine the location of Via Laundry's branch
DOI:
https://doi.org/10.22441/oe.2024.v16.i1.099Keywords:
decision, business location selection, Analytical Hierarchy Process, Technique for Order Preference by Similarity to Ideal SolutionAbstract
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.
Downloads
References
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.
Downloads
Published
How to Cite
Issue
Section
License
The copyright to this article is transferred to Universitas Mercu Buana (UMB) if and when the article is accepted for publication. The undersigned hereby transfers any and all rights in and to the paper including without limitation all copyrights to UMB. The undersigned hereby represents and warrants that the paper is original and that he/she is the author of the paper, except for material that is clearly identified as to its original source, with permission notices from the copyright owners where required. The undersigned represents that he/she has the power and authority to make and execute this assignment.
We declare that:
1. This paper has not been published in the same form elsewhere.
2. It will not be submitted anywhere else for publication prior to acceptance/rejection by this Journal.
3. A copyright permission is obtained for materials published elsewhere and which require this permission for reproduction.
Furthermore, I/We hereby transfer the unlimited rights of publication of the above mentioned paper in whole to UMB. The copyright transfer covers the exclusive right to reproduce and distribute the article, including reprints, translations, photographic reproductions, microform, electronic form (offline, online) or any other reproductions of similar nature.
The corresponding author signs for and accepts responsibility for releasing this material on behalf of any and all co-authors. This agreement is to be signed by at least one of the authors who have obtained the assent of the co-author(s) where applicable. After submission of this agreement signed by the corresponding author, changes of authorship or in the order of the authors listed will not be accepted.
Retained Rights/Terms and Conditions
1. Authors retain all proprietary rights in any process, procedure, or article of manufacture described in the Work.
2. Authors may reproduce or authorize others to reproduce the Work or derivative works for the authors personal use or for company use, provided that the source and the UMB copyright notice are indicated, the copies are not used in any way that implies UMB endorsement of a product or service of any employer, and the copies themselves are not offered for sale.
3. Although authors are permitted to re-use all or portions of the Work in other works, this does not include granting third-party requests for reprinting, republishing, or other types of re-use.
