Productivity and Quality in Smart Manufacturing Systems

Location Determination of New Branch for Laboratory Clinic X

Moses L. Singgih and Sri Handayani


Laboratory Clinic X is a Laboratory Clinic that is developing rapidly and participating in the competition among other health service providers. In a highly competitive environment, the selection of a new branch location that has high competitiveness is a top priority. It is important to obtain a location that provides maximum benefits and high competitiveness in accordance with company objectives. Five alternative districts are determined by identifying target market, including population density, potential age population, and wealth level population. Each of the criteria weights is determined using the pair-wise comparison method. The weight is multiplied by the rank held each district, furthermore the five alternative districts are determined; Wonokromo, Semampir, Sawahan, Simokerto, and Tambaksari. The selection criteria and sub criteria are identified based on Porter’s Diamond Model. One of the significant sub criteria is the investmentfeasibility of each district using NPV, IRR, and payback period. The investment feasibility calculations indicate that Wonokromo District the largest weight; NPV IDR 60.646.579.867, 29% IRR, 5 years and 4 months of payback period. Furthermore, P-Median Method is used to find sub optimal from each location. The ANP assessment was conducted using expert judgments. Furthermore, weighted gained by each district shows Wonokromo District get first priority, with a weight of 0.2038, Tambaksari District the second priority with a weight of 0.0942, Simokerto District get 0.0782 of weight, District Semampir get 0.0726 of weight, and Sawahan District 0.0502. As the district with the highest weight, District Wonokromo is chosen as the best location.

Keywords: Laboratory Clinic Location Selection, Porter’s Diamond Model, P-Median Method, Investment Feasibility, ANP.


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