Applying the Analytical Hierarchy Process to Select Strategic Locations for Culinary MSMEs in Tomohon City

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in Indonesia\u27s economy, making up over 99% of business units. In Tomohon City, located in North Sulawesi, Indonesia, MSMEs, especially in the culinary sector, have faced challenges due to the COVID-19 pandemic, which led to significant revenue losses and business closures. However, recovery efforts are underway, prompting the development of a web-based system to aid culinary businesses in selecting optimal locations. Utilizing the Analytic Hierarchy Process (AHP) method, the system evaluates potential sites based on five criteria: completeness of infrastructure, population density, competition, community incomes, and business capital. Each criterion is assessed using sub-criteria such as very good to very inadequate, providing tailored recommendations for Downtown District, Dotu Tololui Tua Statue, Kakaskasen Highway Area, and Beriman Terminal. Among these criteria, infrastructure completeness (40.4%) is prioritized most, followed by population density (26.2%), competition (18.1%), community incomes (10.4%), and business capital (4.9%). The sensitivity analysis indicates that changes in criteria weights significantly impact the rankings of alternatives, with infrastructure and community incomes causing minor changes but preserving the top-ranked options, while population density and business capital lead to more substantial shifts, including changes in the top position