Analytic Delphi Method (ADM): A strategic decision making model applied to location planning

Abstract

Location decisions have a significant impact on the efficiency and success of an institution. Where an organization is located affects not only its ability to compete effectively but also itstransportation costs, labor costs, employee morale, public relations, etc. Location decisions are based on multiple criteria at least some of which are intangible, even emotional. This study proposes the Analytic Delphi Method (ADM), which permits the incorporation of intangible as well as tangible factors into the decision making process. The study illustrates ADM's application to location planning. ADM's strength lies in its integration of two strong methodologies: the Delphi method (a widely used forecasting and planning tool) and the Analytic Hierarchy Process (a mathematical model for multicriteria decision making).