Cognitive Mapping: A Decision Support Tool for a New Business Unit Location Choice

The search for the best way to allocate resources is a common problem in organizations. The difficulty lies, generally, in trying to bring together conflicting goals, usually condensed to minimize costs and maximize benefits, all in accordance with a risk level considered acceptable. The identification of promising locations for the installation of new business units addresses this kind of problem, where a decision has to be made in order to optimize the organizations resources. This paper aims to discuss the use of cognitive maps as a support tool in a locational decision problem. To this end, we present concepts treated in literature, necessary to understand the issue at hand. Then, explanations are taken on the use of cognitive maps for the identification and hierarchical structuring of Fundamental Points of View of a decision maker. Finally, a case study is presented, aiming to demonstrate the applicability of cognitive maps in developing an analytical framework to support the decision making process of choosing the location for a new medical laboratory unit.