Decision Support System for Determining Factory Location Using the TOPSIS Method
Ahmad Arif Nurrahman, Otong Rukmana, Ajrina Febri Suahati, Insan Nugraha, Krisna Riyadi, Rieven Adha Geva Putra Gerry, Putri Aulia Susilo

Industrial Engineering, Unisba

Abstract

When selecting or determining a location for a new factory, several strategic and technical considerations must be taken into account. A company must ensure that the right and relevant factors are considered during the decision-making process or when selecting a new location. The right location will influence the success of a business. Therefore, the process of selecting a new location for a factory must receive serious attention from policy makers within the company. The more new factories there are, the more it will support sustainable industrial development or industrialization, in line with the objectives of Sustainable Development Goal (SDG) 9. That is, striving to build resilient infrastructure, promoting sustainable industrialization, and fostering innovation. To make decisions based on multi-criteria or complex criteria, the Decision Support System (DSS) method can be utilized. This study will employ one of the DSS models, namely the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). Then, a website-based system will be developed and a prototype will be produced. The system testing phase will involve practitioners or policy makers who have the authority to make decisions regarding the location of the factory. This research is expected to provide benefits in developing a criteria model for selecting factory locations, ranging from small-scale, medium-scale, to large-scale factories. The system developed will not only be theoretical but also an application accessible to relevant stakeholders, particularly industry practitioners and government officials.

Keywords: Factory Location Determination, Decision Support System, TOPSIS Method

Topic: Industry Engineering