Brown & Gibson Model

Presented by
Divya B.R
Sourav Jana
Goutam Joshi
Introduction

• The Brown–Gibson model is one of the many techniques for multi-

attribute decision making. The method was developed in 1972 by P.
Brown and D. Gibson.
• It is a systematic method which allows taking into account all subjective,
objective and critical factors, and then it allows Subjective Factoring
Weighting to evaluate the role of each subjective factor, to help us
select the best location out of a few to set up a plant.
Mathematical representation
LMi = CFMi X [ X X OFMi + (1−X) X SFMi]
Where
• LM = Measure for an alternative 'i'
• CFMi = Critical factor measure which could be either be 0 or 1 for an alternative 'i'
• OFMi= Objective factor measure which could be between 0 and 1 however the sum
of all objective factor measures for different alternatives should add back to 1
• SFMi = Subjective factor measure which could be between 0 and 1 however the sum
of all subjective factor measures for different alternatives should add back to 1
• X = Objective factor decision weight and this should be between 0 and 1
Critical factor measure (CFMi)
• Criteria are critical if their nature may preclude the location of a plant at
a particular site, regardless of other conditions that might exist.
• This factor can either be 1(if criteria is satisfied) or 0 (If criteria is not
satisfied)
• Ex :
For a Sugar factory, availability of sugarcane is a critical factor.
If sugarcane is available then CFMi is 1 else it is 0.
Critical factor measure (CFMi)
• Criteria are critical if their nature may preclude the location of a plant at
a particular site, regardless of other conditions that might exist.
• This factor can either be 1(if criteria is satisfied) or 0 (If criteria is not
satisfied)
• Ex :
For a Sugar factory, availability of sugarcane is a critical factor.
If sugarcane is available then CFMi is 1 else it is 0.
Objective factor measure (OFMi)
• These are criteria which can be evaluated in monetary terms, such as Labour, raw material,
utilities and taxes.
• A factor can be both critical as well as objective, for example for a Labour intensive plant,
adequacy of Labour is critical factor and the cost of Labour is an objective factor.
• The formula for OFMi is as below :
Max OFC – OFCi
Max OFC – Min OFC
Max OFC – Maximum objective factor cost within a given set of locations.
Min OFC – Maximum objective factor cost within a given set of locations.
OFCi – Objective factor cost of location ‘i’
• With the help of this equation we can say that location with maximum cost will have OFM as 0
and the location with minimum cost will have the OFM as 1
Subjective factor measure (SFMi)
• Criteria characterized by a qualitative type of measurement are considered
subjective. For example ‘Community Support' when evaluated, its monetary
equivalent cannot be established.
• The subjective factor measures, SFMi for each site is influenced by the relative
weight of each subjective factor and the evaluation of site i relative to all other sites
for each of the subjective factors.
SFMi = Σk ( SFWk x SWik) 
SFWk = Weight of subjective factor k relative to all subjective factors
SWik = Evaluation of site i relative to all potential site for subjective factor k
Objective factor decision weight (X)
• The objective factor decision weight, X, must be determined. This factor
establishes the relative importance of the objective and subjective
factors in the overall location problem. The decision is commonly based
on managerial judgment that requires a careful analysis of the trade off
between cost and the combined effect of the subjective factors.
Example
• The ABC Pump Company is currently located in the industrial district of a large city, and several
problems have led to the decision to relocate. Their search has finally narrowed to four cities, and
comparative data are shown in table. CFM is 1 for all locations
• Objective factors
  Labour Transporta Central Fuel State Taxes Power Water Total
tion Taxes
City A 1.50 0.60 0.03 0.04 0.02 0.04 0.02 2.25
City B 1.60 0.70 0.05 0.06 0.04 0.07 0.03 2.55
City C 1.65 0.60 0.60 0.06 0.05 0.05 0.03 2.70
City D 3.65 0.50 0.50 0.06 0.08 0.06 0.05 4.30

• Subjective factors
  Labour Type of Attitude Appearanc Transport Recreation Union
Supply labour e
City A Adequate Good Good Fair Good Good Significant
City B Plentiful Excellent V.Good Good V.Good V.Good Negligible
City C Plentiful Excellent V.Good Good Good V.Good Negligible
City D Plentiful Excellent Good Good V.Good V.Good Active
Calculation of Objective Factor Measure (OFM) 
  Labour Transporta Central Fuel State Taxes Power Water Total
tion Taxes
City A 1.50 0.60 0.03 0.04 0.02 0.04 0.02 2.25
City B 1.60 0.70 0.05 0.06 0.04 0.07 0.03 2.55
City C 1.65 0.60 0.60 0.06 0.05 0.05 0.03 2.70
City D 3.65 0.50 0.50 0.06 0.08 0.06 0.05 4.30

Max OFC – OFCi

Max OFC – Min OFC
• OFMA=4.30-2.25/4.30-2.25 = 1
• OFMB=4.30-2.55/4.30-2.25 = 0.85
• OFMC=4.30-2.70/4.30-2.25 = 0.78
• OFMD=4.30-4.30/4.30-2.25 = 0
Calculation of Subjective factor measure (SFM) 

After assigning weights to all the subjective factors. We arrive at the below table

  Labour Type of Attitude Appearance Transport Recreation Union

Supply labour
City A 0.2 0.4 0.4 0 0.4 0.4 0.00
City B 0.8 1 0.6 0.4 0.6 0.6 1
City C 0.8 1 0.6 0.4 0.4 0.6 1
City D 0.8 1 0.4 0.4 0.6 0.6 0.10
Calculation of Subjective factor measure (SFM) 
• By using the formula for SFM , and assigning subjective factor weights
SFMi = Σk ( SFWk x SWik) 
and assigning subjective factor weights (SFWk), we have the values of
SFM as below for the respective locations.
SFMa = 0.252
SFMb= 0.8035
SFMc= 0.7735
SFMd= 0.561
Location measure
• Using the formula
LMi = CFMi X [ X X OFMi + (1−X) X SFMi]
and the previously calculated values, LM values are calculated. X is assumed to be
.60 (60%) indicating that a 60% of weightage is given to Objective factors.

Site OFM SFM LM

City A 1 0.252 0.7008
City B 0.85 0.7835 0.8314
City C 0.78 0.7435 0.7774
City D 0 0.541 0.2244
Wrap-up
• As the LM value calculated for location B is highest (0.8314),
as per Brown and Gibson model, location B is the best location to set up

the plan
Questions?
Thank you