NSU Research Contributions
Title : Use of multi-criteria decision analysis for location decision: Developing a risk reaction spectrum.
Authors : Khan Muhammad Saqiful Alam, Faisal Ibne Wali, Shahid Hossain, Muhammad Maruf Ibne Wali
Abstract : To propose the use of Multi-Criteria Decision Analysis (MCDA) as an effective means for location selection, we draw results of findings from case previously carried out on the Strawberry syrup manufacturing plant. Location Decisions are extremely crucial to how a business facility would perform, and whether it would survive, thrive or not. The location affects operations, productivity and even business strategy, and takes into account organizational behaviour as well as demographics and economics of the location. Location decision making traditionally makes use of either qualitative or quantitative data but not both. The MDCA system tries to make use of both qualitative, quantitative (and more) and helps rank the ten most auspicious locations for the facility. The case in question was a study carried out on the strawberry syrup manufacturing plant of Haque Brothers Industries. They need strawberry syrup to manufacture wafers. They, through this study, tried to come up with three perfect locations to set up a factory. Studies were conducted to collect qualitative data as well as quantitative data from the field. Using the MCDA analysis, qualitative and quantitative data are used to form criteria in which to rank each site. The criteria include economic, demographic and physical factors. Using these criteria, the MCDA software IDS is used to come up with ten locations. The study also involved risk analysis, as it considered decisions from leaders with varying risk-taking tendencies to form a spectrum. All the data, the weighted criteria is used to come up with a Risk Preference Spectrum for all alternatives. These are used to select the top 3 locations where the facility can be set up. The top three locations were found to meet the criteria in such a way that setting up facilities there would minimize costs and maximize profit via production in any of those locations.
|Journal : The Journal of Developing Areas||Volume : 49||Year : 2015||Issue : 6|
|Pages : 505-516||City :||Edition :||Editors :|
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