FACTORY LOCATION SELECTION USING AHP, TOPSIS AND ELECTRE METHODS: A CASE STUDY

This study employs MCDM techniques—specifically AHP, TOPSIS, and ELECTRE—to identify the optimal location for a facility based on a set of predefined criteria: Proximity to Raw Materials, Proximity to Market, Workforce Potential, Technical Capabilities, Fixed Costs, and Public Supports. Within the methodological framework, the AHP approach was utilized to accurately assign weights to the evaluation criteria, whereas TOPSIS was applied to rank the alternatives based on their proximity to the ideal solution, and ELECTRE was employed to analyze the dominance relationships among the options. The implementation phase involved a comprehensive analysis of factors such as raw material access, cost structures, and labor availability using these methods, revealing that all three approaches yielded consistent and corroborative results. The case study concluded that Izmir, which received the highest performance score according to all three MCDM methods based on the defined criteria, stands out as the most strategically suitable city for olive oil factory locations.