Using AHP and Delphi Method to select the facility location for taiwanese conductive rubber industry

Hsi Kung Shih*, Dah Chuan Gong

*Corresponding author for this work

Research output: Contribution to journalJournal Article peer-review


Effective decision of facility location selection can help companies save costs, improve service quality and enhance competitive superiority of global market. Therefore, facility location is extremely important for industrial growth. This study first uses the Likert Scale to select potential locations, identify the primary and secondary factors, and establish an analysis framework of Analytical Hierarchy Process (AHP). With the AHP, the study then collects opinions from experts to find solutions for complicated problems. When there is a disagreement between different viewpoints, the study adopts the Delphi Method, which has the advantages of gathering repeated feedback of questions and answers, to integrate suggestions from the experts. From the investigation, Suzhou is the most ideal city as facility location in East China. The first primary factor affecting facility location is the adequacy of infrastructure; and the first secondary factor is steady supply of electricity. The result of this study can serve as a reference for all businesses while establishing facilities in China. It can also help the authorities in China improving the overall investment environment to benefit Taiwan enterprises and attracting more businesses investment.

Original languageEnglish
Pages (from-to)229-245
Number of pages17
JournalJournal of Quality
Issue number3
StatePublished - 2010
Externally publishedYes


  • Analytical Hierarchy Process (AHP)
  • Delphi Method
  • Facility location
  • Likert Scale


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