The location of wood industry has not been selected by proper planning in Iran and for that reason the production rate is not satisfactory. Effective indicators in location of the Industry were identified and a hierarchy was constructed based on five major groups of criteria. The weights of the indicators were then established by Analytical Hierarchy Process. The amounts of the indicators with regard to alternatives were obtained from factories in public and private sectors. These weights were employed in TOPSIS to rank the alternatives. Finally the potential provinces were identified according to the priorities obtained by this technique. The results showed that Kurdistan Province has the best priorities for establishment of Wood industry plants.

Keywords: Wood industry, TOPSIS, Analytical Hierarchy Process, Location, Priority