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This chapter delves into hybrid analysis techniques for location problems, exploring factors influencing discrete and continuous spaces. It provides insight into qualitative, quantitative, and hybrid analysis methods to aid in decision-making. The chapter also showcases a practical example involving Mole-Sun Brewing Company's location evaluation, allowing readers to understand real-world application of the discussed methodologies.
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Outline • 11.1 Introduction • 11.2 Important Factors in Location Decisions • 11.3 Techniques for Discrete Space Location Problems • 11.3.1 Qualitative Analysis • 11.3.2 Quantitative Analysis • 11.3.3 Hybrid Analysis
Outline Cont... • 11.4 Techniques for Continuous Space Location Problems • 11.4.1 Median Method • 11.4.2 Contour Line Method • 11.4.3 Gravity Method • 11.4.4 Weiszfeld Method
11.3.3 Hybrid Analysis • Critical • Objective • Subjective
Hybrid Analysis Cont... CFij = 1 if location i satisfies critical factor j, 0 otherwise OFij = cost of objective factor j at location i SFij = numerical value assigned (on scale of 0-100) to subjective factor j for location i wj = weight assigned to subjective factor (0<w< 1)
Hybrid Analysis Cont... The location measure LMi for each location is then calculated as: LMi = CFMi [ OFMi+ (1- ) SFMi ] Where is the weight assigned to the objective factor. We then choose the location with the highest location measure LMi
Example 4: Mole-Sun Brewing company is evaluating six candidate locations-Montreal, Plattsburgh, Ottawa, Albany, Rochester and Kingston, for constructing a new brewery مصنع الجعة. There are two critical, three objective and four subjective factors that management wishes to incorporate in its decision-making. These factors are summarized in Table 7. The weights of the subjective factors are also provided in the table. Determine the best location if the subjective factors are to be weighted 50 percent more than the objective factors.
Table 7:Critical, Subjective and Objective Factor Ratings for six locations for Mole-Sun Brewing Company, Inc.
Table 7 Cont... Location Albany 0 1 Kingston 1 1 Montreal 1 1 Ottawa 1 0 Plattsburgh 1 1 Rochester 1 1 Factors Critical Water Supply Tax Incentives
Table 7 Cont... Location Albany 185 80 10 Kingston 150 100 15 Montreal 170 90 13 Ottawa 200 100 15 Plattsburgh 140 75 8 Rochester 150 75 11 Factors Critical Objective Revenue Labor Cost Energy Cost
Table 7 Cont... Location 0.3 0.4 Albany 0.5 0.9 Kingston 0.6 0.7 Montreal 0.4 0.8 Ottawa 0.5 0.4 Plattsburgh 0.9 0.9 Rochester 0.7 0.65 Factors Subjective Community Attitude Ease of Transportation
Table 7Cont... Location 0.25 0.05 Albany 0.6 0.7 Kingston 0.7 0.75 Montreal 0.2 0.8 Ottawa 0.4 0.8 Plattsburgh 0.9 0.55 Rochester 0.4 0.8 Factors Subjective Labor Unionization Support Services
Table 11.14 Location Analysis of Mole-Sun Brewing Company, Inc., Using Hybrid Method
Table 11.14 Cont... Location Albany -95 0.7 0 Kingston -35 0.67 0.4 Montreal -67 0.53 0.53 Ottawa -85 0.45 0 Plattsburgh -57 0.88 0.68 Rochester -64 0.61 0.56 Factors LMi Critical Objective Subjective Sum of Obj. Factors SFMi
