Decision making for facility location selection using PROMETHEE II method

Vijay Manikrao Athawale, Prasenjit Chatterjee and Shankar Chakraborty

International Journal of Industrial and Systems Engineering, 2012, vol. 11, issue 1/2, 16-30

Abstract: Facility location selection is an important problem in all kinds of businesses, including service and manufacturing organisations. Selecting a location for a new organisation or expansion of an existing facility is a crucial component in the eventual success or failure of the organisation. Proper location selection can be a strategic tool that can significantly improve market share growth and increase customer profitability. The cost associated with acquiring the land and facility construction makes the facility location selection a long-term investment decision. The best facility location is that which results in higher economic benefits through increased productivity and good distribution network. Selecting the proper facility location from a given set of candidate alternatives is a difficult task, as many potential qualitative and quantitative criteria need to be considered. This paper solves two real time facility location selection problems using preference ranking organisation method for enrichment evaluation (PROMETHEE II) method which is observed to an effective multi-criteria decision-making (MCDM) tool often applied to deal with complex problems in the manufacturing environment. The ranking performance of PROMETHEE II method is compared with the other MCDM methods and it is observed that the top-ranked alternatives exactly match with those as obtained by the past researchers.

Keywords: facility location; MCDM; multicriteria decision making; PROMETHEE II; ranking performance; location selection; manufacturing industry. (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (7)

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