Facility Location Selection Using AHP/PROMETHEE II Ranking Method

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Facility location selection is the determination of a strategic site for institution operations. The facility location decision involves institutions seeking to locate, relocate or expand their operations. The facility location decision process encompasses the identification, analysis, evaluation and selection among alternatives with respect to criteria Selecting the best location among many alternatives is a Multi Criteria Decision Making (MCDM) problem. The aim of this thesis is to demonstrate the implementation of Analytic Hierarchy Process (AHP)/Preference Ranking Method for Enrichment Evaluation (PROMETHEE) II ranking method for selecting the most suitable location for the financial institution in Obuasi Municipality. The related problem includes five possible alternatives and five criteria to evaluate them. The AHP is used to analyze the structure of the facility location selection problem and to determine weights of the criteria and the alternatives, and PROMETHEE II ranking method was finally used to obtain the complete ranking. The location with the highest score is suggested as the best strategic site for the facility to be located. In accordance with the results generated by the proposed method, A5 has the highest net outranking flow, followed by A3, A4, A2 and the last rank is A1. Therefore, A5 is the best alternative for the facility to be located.
A thesis submitted to the Institute of Distance Learning, Kwame Nkrumah University of Science and Technology in partial fulfilment of the requirement for the award of Master of Science degree in Industrial Mathematics.