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An analytic model for locating facilities strategically

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  • Partovi, Fariborz Y.
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    Abstract

    This paper presents a strategic solution to the facility location problem which incorporates both external and internal criteria in the decision-making process. The external components of the model are customers and their wants, competitors, and the characteristics of various locations. The internal components of the model are the critical processes in the manufacturing organization. The framework presented uses quality function deployment (QFD), analytic hierarchy process (AHP) and analytic network process (ANP). QFD matrices with interconnected rows and columns relate market segments, competitive priorities, critical processes, location attributes and various locations. AHP determines the intensity of the relationship between the row and column variables of each matrix. Finally, ANP determines the intensity of synergistic effects among column variables. The model fine-tunes and adds precision to an otherwise qualitative strategic decision process. The applicability of our proposed model is demonstrated with a case study that summarizes an intervention in which the model's framework and basic concepts were applied.

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    Bibliographic Info

    Article provided by Elsevier in its journal Omega.

    Volume (Year): 34 (2006)
    Issue (Month): 1 (January)
    Pages: 41-55

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    Handle: RePEc:eee:jomega:v:34:y:2006:i:1:p:41-55

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    Related research

    Keywords: Strategic location decision Facility location selection Quality function deployment Analytic network process;

    References

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    1. Current, John & Min, Hokey & Schilling, David, 1990. "Multiobjective analysis of facility location decisions," European Journal of Operational Research, Elsevier, vol. 49(3), pages 295-307, December.
    2. Saaty, Thomas L., 1990. "How to make a decision: The analytic hierarchy process," European Journal of Operational Research, Elsevier, vol. 48(1), pages 9-26, September.
    3. Avella, P. & Benati, S. & Canovas Martinez, L. & Dalby, K. & Di Girolamo, D. & Dimitrijevic, B. & Ghiani, G. & Giannikos, I. & Guttmann, N. & Hultberg, T. H. & Fliege, J. & Marin, A. & Munoz Marquez, , 1998. "Some personal views on the current state and the future of locational analysis," European Journal of Operational Research, Elsevier, vol. 104(2), pages 269-287, January.
    4. Schmenner, Roger W. & Huber, Joel C. & Cook, Randall L., 1987. "Geographic differences and the location of new manufacturing facilities," Journal of Urban Economics, Elsevier, vol. 21(1), pages 83-104, January.
    5. Partovi, Fariborz Y. & Epperly, John M., 1999. "A quality function deployment approach to task organization in peacekeeping force design," Socio-Economic Planning Sciences, Elsevier, vol. 33(2), pages 131-149, June.
    6. Abbie Griffin & John R. Hauser, 1993. "The Voice of the Customer," Marketing Science, INFORMS, vol. 12(1), pages 1-27.
    7. Badri, Masood A., 1999. "Combining the analytic hierarchy process and goal programming for global facility location-allocation problem," International Journal of Production Economics, Elsevier, vol. 62(3), pages 237-248, September.
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    Citations

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    Cited by:
    1. Parra-López, Carlos & Groot, Jeroen C.J. & Carmona-Torres, Carmen & Rossing, Walter A.H., 2008. "Integrating public demands into model-based design for multifunctional agriculture: An application to intensive Dutch dairy landscapes," Ecological Economics, Elsevier, vol. 67(4), pages 538-551, November.
    2. Chin-Tsai Lin & Meng-Chuan Tsai, 2010. "Location choice for direct foreign investment in new hospitals in China by using ANP and TOPSIS," Quality & Quantity: International Journal of Methodology, Springer, vol. 44(2), pages 375-390, February.
    3. Tuzmen Semih & Sipahi Seyhan, 2011. "A Multi-Criteria Factor Evaluation Model For Gas Station Site Selection," Journal of Global Management, Global Research Agency, vol. 2(1), pages 12-21, July.
    4. Pelegrín, Blas & Fernández, Pascual & Dolores García Pérez, María & Cano Hernández, Saúl, 2012. "On the location of new facilities for chain expansion under delivered pricing," Omega, Elsevier, vol. 40(2), pages 149-158, April.
    5. Wenstøp, Fred & Koppang, Haavard, 2009. "On operations research and value conflicts," Omega, Elsevier, vol. 37(6), pages 1109-1120, December.
    6. Parra-Lopez, Carlos & Groot, J.C.J. & Carmona-Torres, Carmen & Rossing, W.A.H., 2008. "Exploring sustainable technical alternatives for Dutch dairy systems by integrating agro-economic modelling and public preferences assessment," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 44253, European Association of Agricultural Economists.
    7. Li, Yan-Lai & Tang, Jia-Fu & Chin, Kwai-Sang & Jiang, Yu-Shi & Han, Yi & Pu, Yun, 2011. "Estimating the final priority ratings of engineering characteristics in mature-period product improvement by MDBA and AHP," International Journal of Production Economics, Elsevier, vol. 131(2), pages 575-586, June.
    8. Scott, James A. & Ho, William & Dey, Prasanta K., 2013. "Strategic sourcing in the UK bioenergy industry," International Journal of Production Economics, Elsevier, vol. 146(2), pages 478-490.
    9. Seyhan Sipahi Author_Email: sipahi@istanbul.edu.tr & Semih Tuzmen, 2011. "A Multi-Criteria Factor Evaluation Model For Gas Station Site Selection," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-164, Conference Master Resources.
    10. Ramanathan, Ramakrishnan & Yunfeng, Jiang, 2009. "Incorporating cost and environmental factors in quality function deployment using data envelopment analysis," Omega, Elsevier, vol. 37(3), pages 711-723, June.
    11. Azadi, Majid & Farzipoor Saen, Reza, 2013. "A combination of QFD and imprecise DEA with enhanced Russell graph measure: A case study in healthcare," Socio-Economic Planning Sciences, Elsevier, vol. 47(4), pages 281-291.

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