The location problem has been with humans for all of their history. In the past, many rulers had the decision of locating their capital. Reasons for selecting various locations included central location, transportation benefits to foster trade, and defensibility. The development of industry involved location problems for production facilities and trade outlets. Obvious criteria for location of business facilities included profit impact. In the 19th century, there seemed to be a focus on the cost of transporting raw materials versus the cost of transporting goods to consumers. Location decisions were made considering all potential gains and expenses. Some judgment was required, because while most benefits and costs could be measured accurately, not all could be. Successful business practice depended on the sound judgment of the decision-maker in solving location problems.
KeywordsAnalytic Hierarchy Process Location Problem Facility Location Location Decision Facility Location Problem
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