Site Selection Using Ahp Techinique

Topics: Decision theory, Analytic Hierarchy Process, Decision making software Pages: 8 (1584 words) Published: February 7, 2013
Shah Rukh Saleem Muhammad Nabeel FazilSite Engineer Trainee EngineerAl-Shafi EnterprisesPrincipal BuildersCell: 0332-2520456 Cell: 0321-2079720E-mail: shahrukh.pk20@gmail.comE-mail:|

Group Members:

Course Instructor:
Prof. Rizwan Farooqui, PH.D.




The location decision is crucial for the long term survival of a business organization a critical mean by which it could obtain and sustain a competitive advantage. This paper searches the critical attributes and sub-attributes that determine the suitability of location for the manufacturing firms. We have selected automobile industry for our study. Analytical Hierarchy Process based approach is used to prioritize the relative importance of eight (10). Findings of this study advocate that cost is the most important factor in automobile industry with 21%, whereas other factors location, availability of water, industrial area, supplier, customer, infrastructure, business support,regulatory condition and community share 10.47%, 16.56%,14.01%, 10%,9%, 7.24%,5.38%,3.27% and 3.08% respectfully. Table of Contents

1- Introduction
1.1- General
1.2- Scope
1.3- Objectives
1.4- Methodology
2- Literature Review
2.1- Decision Making Techniques
2.2- Types
2.3- AHP Technique
3- Methodolgy
4- AHP Hierarchy
5- Conclusion & Recommendation.


Construction always involves risk in it, it might be high or low but it depends on the financial capability of organization and on the other hand risk depends on decision which carried out after an analysis and right decisions may bear considerable impacts on the success of project.

Selection of location plays a vital role for every management of business organization. Location of site has a great impact on quality, time and cost of a product. The major objective from a client’s perspective is to generate more revenues. This objective can be accomplished by keeping in consideration different factors.

In this term paper we are going to select a site from client’s perspective. Sites are different with each other in terms of the importance factors. Project type is Automotive Industry having 3 available locations in different cities. Some of the critical factors that are considered in this study are as follows:

1. Availability of Water
2. Industrial Area
3. Labour
4. Cost
5. Supplier
6. Customer
7. Infrastructure
8. Business Support
9. Regulatory Conditions
10. Community

Most of the time it has been seen that in our country even professionals take a decision at the end time without analyzing, which may results problem. From the client’s perspective decision making for site selection for any particular project significantly helps the client after taking all risk involve in it. Therefore before selecting a site client could take in to account all factors that affect its final result.

By taking factors of available locations questionnaire has been made, with the help of it we would conduct a survey which will in the end help us by selecting final factors for our analysis. Analysis will be done by AHP technique.

1.2-Study Scope:

Scope of this Term Paper is to select a site out of three different locations in terms of factors which affect the final outcome of project. Project is Automotive Industry.


Objectives of this term paper are,
* To familiarize ourselves in the application of AHP technique for site selection. * To make sample example for site...
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