Selecting Facility Location Using Hybrid Methodologies in Global Perspective: A Case of Cement Plant

Abstract

While selecting a global facility location, the decision makers normally have to face two types of scenarios: exploring and prioritizing the factors affecting the location decision and selecting an appropriate optimization methodology, compatible to the said problem. This paper addresses a real world case study of the problem of selecting a country best suitable for a new cement plant installation among the list of four alternatives.  The irreversible nature of the crucial decision requires analysis of wide range of factors with different optimization techniques. Therefore such factors were explored and prioritized from available literature and by recommendations of panel of experts followed by mathematical modelling of the said problem in four standard methodologies including the one presented in another paper earlier. The solutions were obtained by coding routines in the concerned programs. Stability analysis with respect to change of priorities and change of cost and capacity constraints has provided an in depth scenario evaluation which has added value to the degree of reliability and confidence regarding acceptability of results. The paper is a unique contribution for strategic managers of the cement sector being an aid to make confident global decisions.