Location selection based on AHP/ANP approach

Abstract

Facility location decisions are a key element in any company¿s overall strategic plan. The objectives include producing a product or providing a service at lower cost, at higher quality, or using the least amount of resources. Many studies have proposed models, principles, and criteria to evaluate and select the best location. This study proposes a AHP/ANP based measurement model for evaluating location characteristics in order to help managers to realize the advantages and disadvantages of potential location. The analytical hierarchy process (AHP) and the analytical network process (ANP) are utilized to determine the weight of each criterion when generating the selection model. Finally, this study uses a data sample to verify the feasibility of the evaluation model.