THE LOCATION PROBLEM OF A PLANT AND A WAREHOUSE BY AN EXPANDED LINEAR PROGRAMMING MODEL INTEGRATED WITH AHP

Plant location models are considered only with the aim of locating the plant with minimization of the related cost items without taking into consideration the location of other facilities. Warehouse location problem can be included in the solution of plant location problem simultaneously to find an integrated investment solution. However the whole system should be considered as a network in accordance with the supply chain concept and the optimization of the overall system should be aimed considering suppliers, plants, warehouses and retailers. The study stands on the systems approach and models the problem as a network considering different parties in the supply chain. Facility location factors are stated and classified as quantitative and qualitative. The integration of Analytical Hierarchy Process and a linear integer programming model is proposed for the location selection of both plant and warehouse.