Implementation of Operations Research for Location Selection of J-Cakes' New Branch in Pulau Penang Using the Factor-Rating Method

Abstract

This study applies operations research to address the critical task of selecting an optimal location for J-Cakes, a café based in Pulau Penang, as it plans to establish a new branch to meet rising consumer demand. The location selection process involves evaluating key factors, including security, topography, competition intensity, market proximity, and transportation accessibility. Using the Factor-Rating Method, three potential locations—X, Y, and Z—were analyzed. The findings indicate that Location Y is the most favorable, achieving the highest score (129) due to its strong security measures and balanced performance across other criteria. Additionally, the study explores J-Cakes' strategic approach to addressing competition at the selected site, emphasizing operational efficiency, the practical application of operations research methods, and market-oriented strategies.