Developing a Decision Model as Budget Assignment Method for Locating Industrial Facilities: Real Case Study

Subject Areas : International Journal of Decision Intelligence

Parsa Fallah Sheikhlari ¹ , Seyed Habib A Rahmati ²

1 - Department of Mechanical Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran
2 - Department of Mechanical Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran

Received: 2022-10-19 Accepted : 2022-12-28 Published : 2024-09-22

Keywords: Multicriteria decision making, location problems, Locational allocation, PROMETHE,

Abstract :

In today's world, due to the existence of several criteria in every decision, budgeting has become a complex issue. Applying decision-making methods significantly helps to make optimal decisions. Multiple criteria decision making (MCDM) is a branch of operational research dealing with finding optimal results in complex scenarios including various indicators, conflicting objectives, criteria, and various indicators. The paper presents a location-allocation decision-making problem resulting in the selection of the most desirable location for the consulting service center in the Qazvin state of Iran. In the first stage, different location criteria are determined. Then, the decision-making matrix preparation is completed based on the criteria dimension and expert opinions. The decision problem is formulated as a multiple criteria ranking problem (MCDM). In the second stage, the decision-making is performed by using all three models of the PROMETHEE method. Finally, considered locations are ranked from the best choice to the worst one with the application of the PROMETHEE MCDM/A method.