An AHP decision model for facility location selection

Abstract

Presents an AHP (analytical hierarchy process) decision model for facility location selection from the view of organizations which contemplate locations of a new facility or a relocation of existing facilities. The AHP model provides a framework to assist managers in analysing various location factors, evaluating location site alternatives, and making final location selections. The primary principle of the AHP model is to match decision‐makers’ preferences with location site characteristics. The model requires that a number of potential sites have been proposed. Alternatives are then evaluated and compared under both quantitative and qualitative factors to allow managers to incorporate managerial experiences and judgement in the solution process. Uses an example problem to illustrate the solution process. Addresses managerial implications for future research.