FEASIBILITY STUDY OF THIRD BRANCH ESTABLISHMENT OF SHOES LAUNDRY R&D SHINING SHOES IN BANDUNG VIEWED FROM MARKET, TECHNICAL AND FINANCIAL ASPECTS

ABSTRACT FEASIBILITY STUDY OF THIRD BRANCH ESTABLISHMENT OF SHOES LAUNDRY R&D SHINING SHOES IN BANDUNG VIEWED FROM MARKET, TECHNICAL AND FINANCIAL ASPECTS Bellia Citra Rahmadhani Industrial Engineering Study Program Industrial Engineering Faculty Telkom University R&D Shining Shoes is a SME engaged in shoe care services. Currently R&D Shining Shoes is based in Bandung with address Jl. Sukapura No.18 Bojongsoang Bandung, and has several branches such in Antapani Bandung, Tangerang, Solo and Cibitung. Currently for purpose of increasing profit and branding, R&D Shining Shoes plans to expand the third branch in Bandung. Which alternative location will be selected located in Kecamatan Coblong Bandung. Shoe care and treatment services offered by R&D Shining Shoes are cleaning, repair, recolor and unyellowing. In this study the market aspects obtained by distributing questionnaires to 100 respondents randomly. The result of the questionnaire processing will be used to determine how large the market potential, avaiable market and target market. The result of the questionnaire shows market potential for R&D Shining Shoes are 72%. The avaiable market for cleaning are as many as 83%, repair are as many as 65%, recolor are as many as 44% and unyellowing are as many as 24%. From theres results, the company is targeting 5,4% from the avaiable market to be targeted as target market. After conducted research on R&D Shining Shoes related to feasibility analysis of third branch establishment in Bandung, obtained result that this activities is feasible to run. This is based on value of NPV, PBP and IRR obtained. Based on NPV this business is declared feasible because the value of NPV obtained is Rp.39.124.271,- more than 0. Then based on PBP, obtained result that the investment will return in period of 3 years 0 months. Last based on IRR, this business is declared feasible because the IRR value obtained is 28% exceeding the specified MARR of 9%. From the three investment feasibility criteria can be stated that the establishment third branch in Bandung by R&D Shining Shoes is reasible to run. Keywords: Feasibility Analysis, NPV, PBP, IRR, R&D Shining Shoe