Plant location selection of a manufacturing industry using analytic hierarchy process approach Online publication date: Mon, 31-Aug-2015
by Suman Gothwal; Rajeev Saha
International Journal of Services and Operations Management (IJSOM), Vol. 22, No. 2, 2015
Abstract: Selection of plant location is a multi-person and multi-criteria decision problem. Location selection is a strategic decision that cannot be changed overnight. Even if the location decision is changed at all, a considerable loss is bound to be incurred. Without sound location planning in the beginning, the new facility may pose continuous operating disadvantages for the future operations. In this paper, analytic hierarchy process (AHP) approach is used to arrive at consensus decision. The AHP model is formulated and applied to a real case study to examine its feasibility in selecting the plant location for a manufacturing industry. Different factors were identified affecting the plant location on the five locations (Delhi, Manesar, Chandigarh, Mumbai and Baddi) suggested by a particular manufacturing industry and then AHP technique was implemented to select the best location out of these five locations. After analysis, Baddi is found to be the best location to setup their new plant. AHP is a powerful and flexible tool for tackling the complex decision problem into a simple concept of hierarchy, which incorporates both financial and non-financial factors influencing the decision alternatives in a systematic way.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Services and Operations Management (IJSOM):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com