A Comparative Study of Using MCDM Methods Integrated with Entropy Weight Method for Evaluating Facility Location Problem

Abstract

The location selection of facilities became a major interest for the organizations to establish their planned business for a long period of time. The choice of the best location among a set of candidate locations is a complex process. Although the multiple criteria decision making (MCDM) methods are applicable for location selection problems, different solutions can be obtained using different MCDM methods. Thus, a comparative study between four different MCDM methods was applied within numerical example to show the deviations in ranking of the alternatives that occurs when different methods are used. The weights of attributes are assigned using objective method namely Entropy weight method. The rank disagreements are expressed using spearman`s correlation coefficients.

Keywords

• Multiple-criteria decision making (MCDM); Facility location problem (FLP); Comparative study; Rank disagreement