MULTI-CRITERIA DECISION-MAKING MODEL FOR SELECTION OF CEMENT PLANT LOCATION UTILIZING SIMPLE MULTI-ATTRIBUTES RATING TECHNIQUE (SMART) METHOD (CASE STUDY: PT. RAKEBA GALUH'S CEMENT PROJECT)

• Main Author: Nico Felani Sihombing, Toman
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83892
• Institution: Institut Teknologi Bandung

This study examines the strategic decision-making process for selecting the optimal location for PT. Rakeba Galuh's new cement plant in Ciamis Regency, West Java. Indonesia's economic growth and governmental infrastructure initiatives offer significant opportunities for the cement industry. However, indecision on the plant's site has caused delays and strategic uncertainties, potentially impacting PT. Rakeba Galuh’s operational efficiency and market positioning. To address this, the study employs the Simple Multi-Attribute Rating Technique (SMART) within a Multi-Criteria Decision Analysis (MCDA) framework for evaluating potential sites. The research, grounded in a comprehensive literature review, identifies key criteria influencing site selection, including economic viability, technical feasibility, environmental impact, and socio-economic considerations. A mixed-methods approach integrates qualitative insights from interviews with PT. Rakeba Galuh’s decision-makers and quantitative data from observations and secondary sources. The decision-making process involves defining alternative locations, establishing relevant attributes, assigning performance values, determining attribute weights, calculating weighted averages, making provisional decisions, and conducting sensitivity analysis. Three potential sites in Ciamis Regency—Kecamatan A (Location-A), Kecamatan B (Location-B), and Kecamatan C (Location-C)—are evaluated based on criteria such as land acquisition costs, transportation and logistics costs, proximity to major roads and raw material sources, existing infrastructure, environmental impact, and community support. The analysis identifies Location-C as the most suitable site, offering a balanced combination of technical feasibility, economic viability, and socio-economic benefits. Sensitivity analysis confirms the robustness of this decision under various scenarios. The final recommendation highlights Location-C's alignment with PT. Rakeba Galuh's strategic objectives, ensuring operational efficiency, market competitiveness, and sustainable development.