DECISION ANALYSIS GROUP ASSIGNMENT BUSINESS LOCATION SELECTION

IPMI Executive Class Sept 2012

Group 6 : Chandra,Febi,Fredy,Rosita,Yulianto

OUR BUSINESS
Build a Logistic Service Company for Consumer Goods Distribution in JABODETABEK Area Our services cover warehousing and distribution services from principal to the first layer customers (eg. modern channel, traditional channel)

In our business model, we decided to focus on the logistic management system and have light investment on other factors such as : Renting our warehouses in industrial parks Focus on dry goods Outsourcing the transportation services (vehicles, drivers)

OUR BUSINESS

Potential Clients & Their Manufacturing Sites

DECISION CRITERIAS
Top 3 Key Factors on Selecting Our Business Location are : Proximity to Principals and Customers Infrastructure (e.g., access road, loading docks, environment security) Warehouse Rental Cost

LOCATION ALTERNATIVES

OUR LOCATION ALTERNATIVES

MM 2000 Cibitung Industrial Estate JABABEKA Cikarang Industrial Estate Pulogadung Industrial Estate Cibinong Center Industrial Estate Cilandak Commercial Estate

EVALUATION METHOD
METHOD : COMPOSITE PERFORMANCE INDEX (CPI) WHY Criteria : Heterogeneous Value of

OUR DECISION MATRIX

CRITERIAS ALTERNATIVE WAREHOUSE RENTAL COST (IDR in m2/ month)*** 50000 38000 52500

PROXIMITY *

INFRASTRUCTURE**

MM 2000 Cibitung Jababeka Cikarang PuloGadung

2 1 3

3 2 1

Cilandak
Cibinong WEIGHT OF CRITERIA

3
2 0.2

3
2 0.4

90000
32500 0.4

* Proximity ** Infrastructure *** Source BKPM 2012

: 1 = Far, 2 =Moderate, 3 =Near : 1 = Poor, 2 = Moderate, 3 = Good

OUR DECISION MATRIX

Infrastructure Scaling Logic
ALTERNATIVE MM 2000 Cibitung Jababeka Cikarang PuloGadung Cilandak Cibinong ACCESS ROAD Good Good Very Good Very Good Poor CRITERIAS TRAFFIC Very Good Poor Poor Very Good Good FACILITY Very Good Very Good Very Good Very Good Very Good SECURITY Good Good Poor Good Good ORDINAL SCALE 3 2 2 3 2

ALTERNATIVE ACCESS ROAD MM 2000 Cibitung Jababeka Cikarang 2 2 3 3 1 3 1 1 3 2

CRITERIAS TRAFFIC FACILITY 3 3 3 3 3 SECURITY 2.00 2.00 1.00 2.00 2.00 ORDINAL SCALE 2.5 2 2 2.75 2

PuloGadung
Cilandak Cibinong

OUR DECISION MATRIX

Computation Result
CRITERIAS ALTERNATIVE PROXIMITY INFRASTRUCTU RE WAREHOUSE RENTAL COST (IDR in m2/ month) 65.00 85.53 61.90 36.11 100.00 0.4 VALUE RANK

MM 2000 Cibitung 200 Jababeka Cikarang PuloGadung Cilandak Cibinong WEIGHT OF CRITERIA 100 300 300 200 0.2 300 200 200 300 200 0.4 186.00 134.21 164.76 194.44 160.00 2 3 4 1 5

* Proximity ** Infrastructure *** Source BKPM 2012

: 1 = Far, 2 =Moderate, 3 =Near : 1 = Poor, 2 = Moderate, 3 = Good

OUR DECISION