Combining the PROMETHEE method and mathematical programming for multi-objective facility location problem

Abstract

The decision making concerning where to locate new facilities is crucial in designing distribution networks. In the present study, the supply chain concept and the multi-objective facility location problem were studied. We integrated also multi-criteria decision analysis (MCDA) and linear programming model (LPM) methods to support selection of best sites according many objectives. In addition, facility location decision involves both qualitative and quantitative criteria. In order to select the best location, it is often necessary to compromise possibly conflicting tangible and intangible factors. The major weaknesses of the different multi-objective programming models used to solve the problem are that they are basically mathematical and they ignore qualitative objectives, such as the environmental and socio-economic factors which are important in facility location selection. In this paper, we reported the obtained results when applying an integrated MCDA/LPM approach to solve the facility location problem (FLP) for an aluminium company in Tunisia. We combined three methods, preference-ranking organisation method for enrichment evaluation (PROMETHEE) and a linear programming model (LPM), using the stretching and shrinking graphs method (SSG method).