The Location Allocation Problem

1115 WordsApr 27, 20165 Pages
There are three different variations of the location allocation problem being discussed in the articles. The LAP can be seen below. Figure 1. Image of the Location Allocation Problem from [2], where EF stands for existing facilities and NF stands new facilities. The first variation, global location allocation problems, are what most large or cooperate businesses are dealing with today. Most businesses that are looking to open new facilities are looking to either expand international or expand domestically, but both require a global aspect. By combining AHP and GP, Badri created an efficient manner in which to solve the added constraints of making the location allocation problem global. The analytical hierarchy process was created by Saaty to add constraints into the LAP so that it is a global problem. Since the global scale required additional regulations such as; political situations, global competition, government regulations, and economic factors are added. This hierarchy is created to be able to give a swift answer in a political environment where time is of the essence. The first thing that must be established in the hierarchy is the goal, then the criteria, and lastly the alternative locations. This problem requires the decision makers to apply weights to certain goals and locations. The decision maker(s) have to place a weight or priority on each of the alternatives the criteria creates. The weighing is given by equation 1 below. w_i^location=(w_1+w_2+⋯+w_n)
Open Document