A Hybrid Multidimensional Approach to Select a Country for Global Cement Plant Location

• Main Authors: Muhammad Khurram Ali, Khalid Akhtar, Mirza Jahanzaib
• Format: Article
• Language: English
• Published: Mehran University of Engineering and Technology 2015-04-01
• Series: Mehran University Research Journal of Engineering and Technology
• Subjects: Decision Analysis; Multi Criteria Decision Making; Global Facility Location; Global Cement Plant Location Problem; Fuzzy Analytic Hierarchy Process
• Online Access: http://publications.muet.edu.pk/research_papers/pdf/pdf1075.pdf

The globalization and saturated domestic markets force international firms to gradually expand their businesses across the borders to capture potential emerging markets. The decision to select a country for a new cement plant location demands analysis of a large number of factors. It is a multifaceted problem which requires investigation and prioritization of factors in a hierarchical way.This paper uses an FAHP (Fuzzy Analytic Hierarchy Process) based procedure proposing a practical framework for solution of the GCPLP (Global Cement Plant Location Problem). It deals with real world ambiguities and handles a broader spectrum of influencing factors. The criteria for selection of a country for a new cement plant installation are prioritized from the FAHP based evaluation made by experts. Different global databases including the World Bank are used for the fuzzy ratings of the alternatives. It has been learnt in this particular problem that cement specific and cost related factors are the most sensitive while legal regulations and economic conditions are relatively less sensitive for the decision makers. Therefore, the countries having strong lime stone reserves, cheaper fuel costs and good internal marketing positions are higher in ranking. The paper concludes with different rankings of the four countries analyzed which assist the strategic managers in making decisions on the basis of mathematically computed results.