Application of the Analytical Hierarchy Process (AHP) for Location Selection of an Export Fruit and Vegetable Factory in Ratchaburi and Nakhon Pathom Provinces: A Logistics Cost Perspective
Keywords:
location selection, AHP, logistics costsAbstract
This research utilized an analytical hierarchy process (AHP) in order to identify criteria that affect the location selection as well as select a suitable location for the new location of an export fruit and vegetable factory in Ratchaburi and Nakhon Pathom provinces from the point of view of logistics costs. The prioritization of potential locations was conducted by reviewing relevant literature and consulting specialists, which involved screening the criteria associated with the selection process, the criteria consisted of transport cost, inventory holding cost, administration cost, raw material cost, cost of labor, and availability of facilities. Data were collected in the factory from three professionals who were asked questions from pairwise comparison assessment form. Data analysis was conducted using several criteria to assist in decision-making for the selection of a new factory location. The results of the analysis showed that the third alternative was the most important alternative for the factory in terms of logistics costs. The weight of the mean importance was 0.484. The third alternative was located in Klong Yong sub-district, Phutthamonthon district, Nakhon Pathom province, which is appropriate to operate as a new location for an export fruit and vegetable factory
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