Learning-Based Multi-Criteria Decision Model for Site Selection Problems

Abstract: Strategically locating sawmills is critical for the efficiency, profitability, and sustainability of timber supply chains, yet it involves a series of complex decision-making affected by various factors, such as proximity to resources and markets, proximity to roads and rail lines, distance from the urban area, slope, labor market, and existing sawmill data. Although conventional Multi-Criteria Decision-Making (MCDM) approaches utilize these factors while locating facilities, they are susceptible to bias since they rely heavily on expert opinions to determine the relative factor weights. Machine learning (ML) models provide an objective, data-driven alternative for site selection that derives these weights directly from the patterns in large datasets without requiring subjective weighting. Additionally, ML models autonomously identify critical features, eliminating the need for subjective feature selection. In this study, we propose integrated ML and MCDM methods and showcase the utility of this integrated model to improve sawmill location decisions via a case study in Mississippi. This integrated model is flexible and applicable to site selection problems across various industries.