Strategic insights in manufacturing site selection: a multi-method approach using factor rating, analytic hierarchy process, and best worst method

Abstract

The current study focuses on selecting the most suitable site location for a manufacturing industry using the Factor Rating Method (FRM). The study considers six key factors: Raw Materials Availability, Location, Availability of Labor, Transport, Availability of Utilities, and Environmental Impact. The FRM assign weights to each factor based on their relative importance. The results indicate that Raw Materials Availability holds the highest weight, suggesting its critical influence on site selection decisions. Subsequently, the Analytic Hierarchy Process (AHP) and Best Worst Method (BWM) are utilized to prioritize three available location alternatives through pairwise criteria comparisons. The analysis reveals that Location C emerges as the most favorable option, effectively meeting the manufacturing industry’s requirements. The successful application of these methods demonstrates their value in aiding decision-making processes related to site location selection. By considering multiple factors and utilizing structured methodologies, organizations can make informed choices aligned with their specific needs and goals. This research contributes to the existing body of knowledge by providing insights into effective site selection strategies for the manufacturing industry. Further research opportunities exist in incorporating additional factors, addressing real-world constraints, and conducting sensitivity analyses to enhance the accuracy and applicability of site location decision-making.