A new method for plant location selection: A holistic approach

Selection of a particular plant location is an important issue when the attributes of the location are conflicting in nature and they have units that cannot be compared. A proposed holistic approach of the Multiple Criteria Decision-Making (MCDM) methodology makes it possible to select the optimal plant location that fits best for the investor. The methodology presented in this article provides a strong decision support system to plant site selection problem. Utility of this type of decision support system lies in providing information articulation, practicability and immense value in managerial understanding. In this paper some conflicting criteria, viz., cost of land, cost of raw material, cost of energy, cost of transportation, cost of labor along with other intangible factors such as work culture, housing facility etc. have been considered. By using the proposed MCDM philosophy locations are ranked. This approach gives a clear indication about the appropriate application and usefulness of the proposed model for potential uses in plant location selection.