Evaluation of Individual Production Sites

Part of the Lecture Notes in Economics and Mathematical Systems book series (LNE, volume 594)


The need to evaluate production sites can arise in different situations. Most obviously, a network optimization project resulting in the decision to establish new production capacity may require a site selection phase in one or more countries (cf. Chap. 2.4.4). Depending on the status quo, the task either is to identify and evaluate potential production sites or to choose the most suitable one from a set of existing sites. Conversely, if capacity is to be reduced potential closure candidates might have to be assessed to identify the one least suitable for future use. Additionally, as pointed out in Chapter 2.4.5, a regular evaluation of all production sites is also required in the context of site controlling. Here the objective is to rank a company’s entire portfolio of existing sites to identify action needs.


Data Envelopment Analysis Analytic Hierarchy Process Data Envelopment Analysis Model Analytic Network Process Objective Weight 
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  1. 37.
    Some authors also use the term “Decision Aid” synonymously. In the past, also the terms “Decision Making” and “Decision Science” were used. However, as discussed by Roy (1993) and Roy (1990a), the latter terms imply a level of objectivity that cannot be achieved in real-life decision situations.Google Scholar
  2. 38. (as of 09/30/2006)Google Scholar
  3. 39.
    Source: Hwang and Yoon (1981, p. 8) with modifications by the author.Google Scholar
  4. 41.
    cf. Saaty (1980).Google Scholar
  5. 42.
    Source: Brans et al. (1986), p. 231.Google Scholar
  6. 43.
    This paragraph is based on Charnes et al. (1994, pp. 6–7) and Golany and Roll (1989, p. 248). Golany and Roll also provide a detailed discussion of how to apply DEA and numerous examples.Google Scholar
  7. 44.
    Which were defined as having no directly measurable financial impact, cf. p. 23.Google Scholar

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© Springer-Verlag Berlin Heidelberg 2007

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