The Development of Decision-support Model for the New Oil Station Based of Geographical Information System

Hening Widi Oetomo
(School of Economics Indonesia (STIESIA), Surabaya, Indonesia)

Abstract: The purpose of this research is to find out the new location of oil station. The measurement is conducted by looking at the level of demand and supply at the new location. The level of demand measured by surrounding activity within the radius of 500 meters from the new location of the oil station. The activity level is measured by considering the number of trading centers, financial centers and education centers within the radius of 500 meters from the new location. The supply measurement is done by measuring the level of competitionsata particular oil station location. The level of supply is measured by counting the number of oil stations within the radius of 500 meters. The research methodology in order to measure the location feasibility is using index model. First, it is evaluating the level of relative important in each criteria to other criteria. Second, the data is standardized on each criteria. Finally, it is counting index value by adding up the multiplication among other criteria with each criteria standard value. The highest index value is 5 meaning that is highly feasible while the lowest value is 1 meaning that it is the least feasible.

Key words: oil station; demand supply; index model; GIS

JEL code: M21