Location Selection Analysis for New Shipyard Using Integration of DEMATEL and ANP: A Case Study (PT IKI)

Abstract

A shipyard is a manufacturing industry that has a capital-intensive character with very high investment value to build the production facilities, requiring serious planning, handling, and management to survive and grow as a healthy industry. PT IKI headquartered in Makassar is planning to expand its business to one of three alternate areas (Ambon, Sorong, and Timika). Determining the location of the new shipyard from existing alternatives need to be done carefully using advance method due to the complexity of the factors and the interrelationship between factors, by first identifying factors that influence (dispatcher) and are influenced (receiver) in selecting shipyard locations and identifying their respective weights factors, will result in the selection of the most strategic location with comprehensive consideration. The influencing factors (dispatchers) and influenced (receivers) in the selection of shipyard locations were obtained by the DEMATEL method, the weight of each factor was analyzed using the DANP method with the results of raw material costs being a priority factor with scores value 13.73%, then the from AHP method obtained the most strategic alternative location is Ambon as the location of the new shipyard with a score value of 40.94%.