STRATEGIC EXPANSION DECISION: SITE SELECTION WITH PROMETHEE II METHOD

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Poster
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Abstract

The definition of location for new operating units is a strategic decision that involves multiple technical and marketing criteria. In companies with already consolidated branches, such as auto parts distributors, this choice must consider not only the market potential, but also the impact on the existing network. This work applies the multicriteria method PROMETHEE II (Preference Ranking Method for Enrichment Evaluation) to support the choice of a city for the installation of a new branch in the state of São Paulo, based on real data. Twenty alternatives and eight criteria were evaluated: revenue, number of active customers, population, municipal GDP and distances from the headquarters and the three existing branches. The data were obtained through internal systems and public sources, and the weights of the criteria were defined with the support of the company's managers. The analysis was conducted with the Visual PROMETHEE software. Two scenarios were considered, with different minimum distance restrictions between units. In both, the city of Araçatuba had a better performance. The study demonstrates that multicriteria methods can contribute to strategic expansion decisions, by enabling a structured comparison between alternatives from different perspectives, integrating technical and strategic aspects.

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Institutions
  • 1 Fundação Hermínio Ometto - FHO
  • 2 Centro Universitário Herminio Ometto de Araras
Track
  • 2. ADM – Multicriteria Decision Making/Aiding
Keywords
Location of facilities
Multi-criteria decision
PROMETHEE II Method