A FUZZY MULTI-CRITERIA DECISION ANALYSIS APPROACH FOR RETAIL LOCATION SELECTION

TOLGA A. Ç., Tuysuz F., Kahraman C.

INTERNATIONAL JOURNAL OF INFORMATION TECHNOLOGY & DECISION MAKING, cilt.12, sa.4, ss.729-755, 2013 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 12 Sayı: 4
  • Basım Tarihi: 2013
  • Doi Numarası: 10.1142/s0219622013500272
  • Dergi Adı: INTERNATIONAL JOURNAL OF INFORMATION TECHNOLOGY & DECISION MAKING
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Sayfa Sayıları: ss.729-755
  • Anahtar Kelimeler: Location selection, multi-criteria, fuzzy, ANP, real options valuation, trinomial lattice approach, ANALYTIC NETWORK PROCESS, FACILITY LOCATION, REAL OPTIONS, DERIVING PRIORITIES, CONVENIENCE STORE, SUPPORT-SYSTEM, ANP MODEL, VALUATION, TOPSIS, AHP
  • Galatasaray Üniversitesi Adresli: Evet

Özet

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.