A decision framework for location-allocation problems: A case study in tea industry

This paper propose the use of the Fuzzy Analytical Hierarchy process (FAHP) and Goal Programming (GP) as an aid in making location-allocation decision and suggest a systematic method for the site selection and product allocation problem. The method can be seen as a decision support framework, which links various objectives, subjective and critical factors in the location-allocation problem to make an optimal decision in which fits best for both operations managers and investors. Important advantages of applying the framework are (1) the ability to decompose the complex problem in smaller problems, (2) the possibility of an efficient and effective contribution of operations managers and investors in decision making process, (3) the detail assessment of the selected location alternative. A demonstration of the application of this methodology in tea industry in Iran is presented.