A systematic approach to multi-criteria site selection with an analysis of weight sensitivity Public Deposited

http://ir.library.oregonstate.edu/concern/graduate_thesis_or_dissertations/nv9355670

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  • Site selection decisions are major components of a company's overall corporate strategy, usually involving incommensurate and possibly conflicting goals, and having long term effects on the productivity and profitability of the firm. The nature of the process requires the application of multi-criteria decision analysis techniques. Multi-criteria site selection involves identification of site factors, development of measures for the factors, assignment of importance weights, selection of a scoring method (design of a model), calculation of a composite site score, and performance of sensitivity analyses. Site factors may be classified into major categories such as land; utilities; transportation; markets; materials, supplies and services; labor; community characteristics; government and legislative; environmental and ecological considerations; and financing. The factors may require monetary or nonmonetary measures, with the latter being objective or subjective. The relative importance (weight) of the factors usually varies depending of the business environment, the type of industry, the type of facility, and the objectives of those affected by the decision. This research extends the features of previously developed techniques into a systematic methodology for analyzing site selection problems. The developmental efforts focus on minimizing the weaknesses of currently available methods through an integrated approach which emphasizes an analysis of selection sensitivity to the variability inherent in factor weights. Since the weights represent value judgments, they are most subject to uncertainty. A comprehensive master list of site factors is developed which utilizes a hierarchical structure. This structure contributes to the effectiveness of the recommended procedures for developing importance weights. Factor measures, developed after the assignment of weights, utilize objective utility functions or descriptive class assessments on a common, dimensionless scale. The guidelines for the analysis of the results incorporate the consideration of costs and nonmonetary factors, and identify important trade-off points that can be used to guide the decision process. The application of this methodology provides the decision maker with additional measures of confidence in the choice of a site.
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