Many methods were proposed in the literature for finding best allocations for DG placement considering various objectives. Sometimes, it becomes cumbersome task for system planners to select the objective for DG allocation based on utility and customer point of view. For this purpose, a set of optimization functions and sensitivity factors have been developed for allocation of DGs in the system. The optimization method consists of maximizing loadability, minimizing losses and cost while satisfying power system constraints. The sensitivity factor comprises voltage performance index and loss sensitivity factor for DG allocation. A decision made by system planner (DMSP) approach has been proposed to decide the allocation of DGs in the system based on utilities and customer demand. For this purpose, first DG locations have been planned in the system based on various objectives. Then, suitable objective has been decided from utility and customer necessities by DMSP. Having these in order, DMSP and analytic hierarchy process (AHP) has been used to make a decision over getting the appropriate locations for DGs placement in the system. A combined suitable option for DG allocations with equal weightage to the various objectives has also been studied in this work.