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An Integrated AHP and MCGP Approach to Location Selection in Service Industry

Kao H


The location selection is an essential decision relating to cost and benefit analysis in every industry. It is complicated to solve because there are many contradictories and multiple objectives in location difficulties. The purpose of the study is designed a technique to solve the location of fitness center evaluation and selection problems. The process of selecting location is a multi-criteria decision making problems since the decision usually involves numerous objectives or criteria. Therefore, AHP (Analytic Hierarchy Process) was applied in the study to identify a location with the highest potential among alternatives for decision makers by using various criteria and attributes. The proposed method in this paper will offer the decision makers a set of multiple aspiration levels for their decision criteria. A case study was conducted with location selection for a fitness center to verify the practicability of the standard approach. A XYZ Company would like to select a location for their new fitness center in a drastically competitive area – Beijing, China. An integrated AHP and MCGP approaches are applied in this study and Location 3 was selected. It has been well acknowledged that selection of a facility location has important strategic implications because a location decision are high priority since they involve long-term assurance of resources and represent an important investment in modeling, formulation, placing facilities and so on. This paper proposed a practical decision model of an AHP method dealing with the evaluation of location alternatives for an apparel company in the fitness sector.

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