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AHP-Driven Strategic Decision Framework for Selecting Optimal Radiopharmaceutical Facility Locations

Author

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  • Fakar Daras Kamal

    (Bandung Institute of Technology, Indonesia)

  • Utomo Sarjono Putro

    (Bandung Institute of Technology, Indonesia)

Abstract

Given the increasingly important role of radiopharmaceutical products in medical diagnosis and treatment, choosing a strategic location for a new radiopharmaceutical facility is an important decision for pharmaceutical companies. This research develops a multi-criteria decision-making framework for selecting optimal radiopharmaceutical facility locations. The framework begins by generating alternative locations and criteria by using a PESTEL analysis to assess the external environment. Five key criteria were then identified for evaluation: customer proximity, transportation accessibility, operational support, public acceptance, and legal acceptance, with each criterion further broken down into specific sub-criteria. The Analytical Hierarchy Process (AHP) method was used to weigh these criteria and sub-criteria based on expert and stakeholder input, and to evaluate the alternative locations. Results of the AHP analysis showed that proximity to customers and accessibility to transportation were the most important criteria, leading to the selection of Cikarang as the optimal location due to its proximity to hospitals, convenient transportation access, and compliance with regulations and permits. Sensitivity analysis confirmed the robustness of this choice against variations in criteria weights. This framework provides a structured approach for pharmaceutical companies in strategic decision-making regarding the siting of radiopharmaceutical facilities.

Suggested Citation

  • Fakar Daras Kamal & Utomo Sarjono Putro, 2024. "AHP-Driven Strategic Decision Framework for Selecting Optimal Radiopharmaceutical Facility Locations," European Journal of Business and Management Research, European Open Science, vol. 9(6), pages 104-116, October.
  • Handle: RePEc:epw:ejbmr0:v:9:y:2024:i:6:id:52459
    DOI: 10.24018/ejbmr.2024.9.6.2459
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