Original Equipment Manufacturer (OEM) Site Selection of Traditional Medicine Compames in Indonesia using Analytic Hierarchy Process (AHP) Method

摘要

OEM Selection is a umque selection methods, it's a combination of site selection and supplier selection. This study aims to determine the best location of the Original Equipment Manufacturer (OEM) in traditional medicine compames in Indonesia using Analytic Hierarchy Process (AHP) method. The results showed that the factors that have the highest weight in determimng OEM locations are availability of raw material, transportation access and labor cost. The combination of these factors indicates that the best location for OEM development is Central Java province. This study is useful to provide insight to traditional medicine compames in Indonesia regarding the importance of determimng the location of OEMs to build competitive strategies in the face of competition from competitors.