Facility location selection using a fuzzy outranking method

Facility location problems are a strategic decision to find the lowest cost space. It is difficult to determine the "best" facility location alternatives to make a judgment. Most decision-making problems deal with uncertain and imprecise data so conventional approaches cannot be effective to find the best solution. To cope with this uncertainty, fuzzy set theory has been developed as an effective mathematical algebra under vague environment. When the system involves human subjectivity, fuzzy algebra provides a mathematical framework for integrating imprecision and vagueness into the decision making models. Owing to the subjective and incomplete data, preference of alternatives is modeled with fuzzy preference relation. Three preference models are used to evaluate the nondominance set from a set of alternatives. The application of this technique draws from a real world case study concerning the location decision of a combined automotive manufacturing and distribution (warehousing) facility in Turkey. Fuzzy outranking approach is used to determine the best location between four alternatives. Consequently, location 4 is the best decision for automotive company (plant and warehousing).