Location selection for small medium enterprise using analytic hierarchy process and factor rating method: study of koer-koer chicken company

Abstract. To achieve success, a culinary company needs to perform a proper planning for their business,especially deciding its store location. However, many small culinary companies often overlooked the analysis of location selection and use their business instinct to choose nearest-cheapest-available location for their company. Though, poor location decision can decrease companies’ profitability. Koerkoer chicken company is a newborn company planning to expand its business by opening its first branch. To prevent problem caused by poor location selection, the owner—which also author of this research— plans to perform a proper location selection analysis. The objective of this research is to find the best store location for Koer-koer chicken company. This research identified key factors for selecting a store location by conducting literature review and holding interview with small business owners who already expand their business and having number of branches. Those factors will be weighted by Analytic Hierarchy Process using a software called Expert Choice. The last part is giving the score of each factor for each alternative option. Of two alternative options, the result of this research showed that location B which located on Jalan Haji Miran, Kukusan, Beji, Depok as the best location for Koer-koer chicken company.Keywords: Analytic Hierarchy Process, Decision Making, Factor Rating Method, Location Selection, Small Medium Enterprise