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A Fuzzy Multi-Criteria Decision Analysis Approach For Retail Location Selection

Author

Listed:
  • A. CAGRI TOLGA

    (Department of Industrial Engineering, Galatasaray University, 34357, Ortakoy, Istanbul, Turkey)

  • FATIH TUYSUZ

    (Department of Industrial Engineering, Istanbul University, 34320, Avcilar, Istanbul, Turkey)

  • CENGIZ KAHRAMAN

    (Department of Industrial Engineering, Istanbul Technical University, 34367, Macka, Istanbul, Turkey)

Abstract

This paper proposes fuzzy multi-criteria decision-making approach integrated with fuzzy real option value theory. The applicability of the proposed method was shown on a real-world supermarket location selection problem. Based on the interviews with the experts, the evaluation criteria for retail location selection were identified. Then the network for fuzzy analytic network process (ANP) method was constructed. The fuzzy real option value for each alternative was calculated and used in the proposed approach as the representative of the financial dimension. Finally, the preference ranking of alternatives and the relative importance of the criteria were obtained. The significant contribution of the proposed approach is that it integrates the financial dimension (FROV) of the location problem methodologically with the multi-criteria characteristic (FANP) of the problem. Another importance of this study is the first usage of real options valuation in the area of location selection science.

Suggested Citation

  • A. Cagri Tolga & Fatih Tuysuz & Cengiz Kahraman, 2013. "A Fuzzy Multi-Criteria Decision Analysis Approach For Retail Location Selection," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 12(04), pages 729-755.
    • Handle: RePEc:wsi:ijitdm:v:12:y:2013:i:04:n:s0219622013500272
    DOI: 10.1142/S0219622013500272
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    References listed on IDEAS

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    1. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
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    Cited by:

    1. Yıldız, Nurdan & Tüysüz, Fatih, 2019. "A hybrid multi-criteria decision making approach for strategic retail location investment: Application to Turkish food retailing," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    2. Fatih Tüysüz, 2018. "Simulated Hesitant Fuzzy Linguistic Term Sets-Based Approach for Modeling Uncertainty in AHP Method," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 801-817, May.
    3. Ji Chen & Jinsheng Wang & Tomas Baležentis & Fausta Zagurskaitė & Dalia Streimikiene & Daiva Makutėnienė, 2018. "Multicriteria Approach towards the Sustainable Selection of a Teahouse Location with Sensitivity Analysis," Sustainability, MDPI, vol. 10(8), pages 1-17, August.
    4. Çelikbilek, Yakup & Tüysüz, Fatih, 2016. "An integrated grey based multi-criteria decision making approach for the evaluation of renewable energy sources," Energy, Elsevier, vol. 115(P1), pages 1246-1258.
    5. Derya Celik Turkoglu & Mujde Erol Genevois, 2017. "An Analytical Approach for Evaluation of ATM Deployment Problem Criteria," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 16(05), pages 1247-1278, September.
    6. Fabio De Felice & Laura Petrillo & Luigi Ranieri & Antonella Petrillo, 2019. "Previous Studies and Differences Between Lean Management and World Class Manufacturing," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(06), pages 1941-1966, November.
    7. Ceren Erdin & Halil Emre Akbaş, 2019. "A Comparative Analysis of Fuzzy TOPSIS and Geographic Information Systems (GIS) for the Location Selection of Shopping Malls: A Case Study from Turkey," Sustainability, MDPI, vol. 11(14), pages 1-22, July.

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