Solving a Distribution Facility Location Problem using an Analytic Hierarchy Process Approach

Abstract

This paper deals with an integrated decision model for determining the location of distribution facilities. As aids in making distribution location decisions, use of decision factor analysis and the analytic hierarchy process is proposed. The location decision model includes a criterion set having 20 criteria divided in 5 groups. For this study, a questionnaire was developed and given to 180 managers in the distribution arena, asking their opinions about the locations of the distribution facilities. The survey results were analyzed based on the location selection criteria. This application of the location decision model to real-world cases, including the recommendation of new distribution facility locations, demonstrates the practical applicability of the research findings.