Multicriteria analysis of location decision and regional production planning

The paper deals with the series of mathematical models to be used in regional production planning and location analysis. The first step is based on the multicriteria programming approach to regional production planning. A set of criteria, regarding the maximization of profit, optimal utilization of production facilities, optimal employment of labor force, and optimal utilization of available production input, is formulated. Also, a set of constraints imposed on resource availability and market demand is used. The process of criteria and constraints’ formulation is closely related to specific needs and interests of the region considered. In the second step, in case that the production facilities available are not sufficient to satisfy the existing demand, optimal expansion of production capacity is sought combined with corresponding location analysis. The validity of the approach proposed is tested on an example illustrating some of the peculiarities characterizing regional production planning problem and corresponding location analysis. A comprehensive software package is developed allowing realization of a specific decision support system for regional production planning and location analysis.