Solving a Facility Location Problem by Three Multi-Criteria Decision Making Methods

Document Type: Research Paper

Authors

School of Industrial Engineering, College of Engineering, University of Tehran, Tehran, Iran

Abstract

Selecting the most appropriate and optimal facility location for a new organization or expansion of an existing location is an important strategic issue. The location, which results in higher economic benefits through increased productivity and good distribution network, is the best location. It is necessary to compare the performance characteristics in a decisive way when a choice is to be made from among several alternative facility locations. While the facility location selection problem includes multiple conflicting criteria and a finite set of potential candidate alternatives, different multi-criteria decision making (MCDM) methods can be effectively applied to solve such type of problem. In this paper, we apply three MCDM methods on a facility location selection problem and their relative ranking performances are compared. Because of disagreement in the ranks obtained by the three different MCDM methods, a final ranking method based on REGIME is also proposed to facilitate the decision making process. Then, the results of this study are compared by the results of the same study.

Keywords