Facility Location Selection and Layout Planning through AHP, PROMETHEE, and CORELAP Methods in the Furniture Industry

Abstract

Facility location selection and internal layout planning are critical strategic decisions for long-term sustainability. This study identified the most feasible location and optimal layout for a commercial bedroom furniture manufacturing facility through a seven-phase evaluation of Istanbul, Ankara, Izmir, and Bursa. The Analytical Hierarchy Process (AHP) and PROMETHEE were used for city and district selection, with AHP calculating criteria weights and PROMETHEE ranking alternatives. The Borda Count Method aggregated MCDM results, selecting Istanbul as the optimal city and Dudullu Organized Industrial Zone (O.I.Z.) as the most favorable district. The CORELAP method developed an optimal single- story layout for a 2688 m2 2 production and assembly facility, enhancing production flow, reducing material handling costs, and improving efficiency. These findings underscore the importance of strategic facility location and layout planning in improving the furniture industry's competitiveness and sustainability. The practical implications of this research are significant, as the findings can be directly applied to improve the competitiveness of the furniture industry. The study offers a comprehensive framework for strategic decision-making, providing valuable insights and a systematic approach applicable to similar problems in various sectors.