Utilizing Decision Making Methods and Optimization Techniques to Develop a Model for International Facility Location Problem under Uncertainty

Abstract

Abstract The purpose of this study is to consider an international facility location problem under uncertainty and present an integrated model for strategic and operational planning. The paper offers two methodologies for the location selection decision. First the extended VIKOR method for decision making problem with interval numbers is presented as a methodology for strategic evaluation of potential countries based on international economic indicators available in the Global Competitiveness Report. Then, regarding these assessments and several quantitative factors, a set covering multi-objective optimization model is presented to consider additional operational criteria in decision making process. An efficient approach for location finding and a novel application of combined VIKOR and global criterion methods can be considered as the main contributions of this paper. Incorporating the theories of international economics in Operations Research models is another contribution of the paper.