A hybrid multi-criteria decision making approach for strategic retail location investment: Application to Turkish food retailing

Abstract Retail location selection decision is a critical and complex process which requires the evaluation and aggregation of multiple criteria and also the usage of appropriate data related to them. This study handles the problem at a strategic level and proposes a Monte Carlo simulation based multi-criteria strategic location decision model for food retailing. This model integrates two multi-criteria decision making (MCDM) methods which are Hesitant Analytic Hierarchy Process (H-AHP) and Grey Relational Analysis (GRA) methods. Firstly, H-AHP method is used to obtain the weights of criteria to be used in GRA based on the experts' judgements. Secondly, simulation based GRA is used for ranking the alternative locations. Finally, the effectiveness and the applicability of the proposed model is illustrated with an application of strategic location investment decision of food retail stores in Turkey.

[1]  Hongxiang Tang,et al.  A novel fuzzy soft set approach in decision making based on grey relational analysis and Dempster-Shafer theory of evidence , 2015, Appl. Soft Comput..

[2]  Mohammad Hossein Abolbashari,et al.  Mass and performance optimization of an airplane wing leading edge structure against bird strike using Taguchi-based grey relational analysis , 2016 .

[3]  P. Sathiya,et al.  Optimisation of laser welding parameters for welding of P92 material using Taguchi based grey relational analysis , 2016 .

[4]  Ravi Shankar,et al.  An STEEP-fuzzy AHP-TOPSIS framework for evaluation and selection of thermal power plant location: A case study from India , 2012 .

[5]  Francisco Herrera,et al.  A group decision making model dealing with comparative linguistic expressions based on hesitant fuzzy linguistic term sets , 2013, Inf. Sci..

[6]  William Applebaum.  Store Location Strategy Cases , 1969 .

[7]  Pedro Chamusca,et al.  Urban policies, planning and retail resilience , 2014 .

[8]  Melike Erdogan,et al.  A combined fuzzy approach to determine the best region for a nuclear power plant in Turkey , 2016, Appl. Soft Comput..

[9]  Lotfi A. Zadeh,et al.  Fuzzy Sets , 1996, Inf. Control..

[10]  Horng-Jinh Chang,et al.  Acquiring an Optimal Retail Chain Location in China , 2015, 2015 2nd International Conference on Information Science and Control Engineering.

[11]  Gnanasekaran Sakthivel,et al.  Multi-criteria decision modelling approach for biodiesel blend selection based on GRA–TOPSIS analysis , 2014 .

[12]  Burcu H. Ozuduru,et al.  Retail development in Turkey: An account after two decades of shopping malls in the urban scene , 2015 .

[13]  Madjid Tavana,et al.  An integrated green supplier selection approach with analytic network process and improved Grey relational analysis , 2015 .

[14]  E. Mohandas,et al.  Parametric optimization of wire electrical discharge machining on aluminium based composites through grey relational analysis , 2015 .

[15]  Morteza Ebrahimi,et al.  Selecting the best zones to add new emergency services based on a hybrid fuzzy MADM method: A case study for Tehran , 2016 .

[16]  Selami Özcan,et al.  Retail Store Location Selection Problem with Multiple Analytical Hierarchy Process of Decision Making an Application in Turkey , 2012 .

[17]  Edmundas Kazimieras Zavadskas,et al.  Decision making on business issues with foresight perspective; an application of new hybrid MCDM model in shopping mall locating , 2013, Expert Syst. Appl..

[18]  R. J. Kuo,et al.  A decision support system for locating convenience store through fuzzy AHP , 1999 .

[19]  Yongtae Park,et al.  A systematic approach for diagnosing service failure: Service-specific FMEA and grey relational analysis approach , 2011, Math. Comput. Model..

[20]  Deng Yong.  Plant location selection based on fuzzy TOPSIS , 2006 .

[21]  J. Reynolds,et al.  Location decision-making in retail firms: evolution and challenge , 2010 .

[22]  Yong Zhao,et al.  Location selection of city logistics centers under sustainability , 2015 .

[23]  Ching-Chow Yang,et al.  Supplier selection using combined analytical hierarchy process and grey relational analysis , 2006 .

[24]  Ali Siadat,et al.  A new hesitant fuzzy analytical hierarchy process method for decision-making problems under uncertainty , 2014, 2014 IEEE International Conference on Industrial Engineering and Engineering Management.

[25]  Peng Wang,et al.  A hybrid method using experiment design and grey relational analysis for multiple criteria decision making problems , 2013, Knowl. Based Syst..

[26]  D. Huff.  A Probabilistic Analysis of Shopping Center Trade Areas , 1963 .

[27]  Metin Dağdeviren,et al.  A Courthouse Site Selection Method Using Hesitant Fuzzy Linguistic Term Set , 2016 .

[28]  Kamran Shahanaghi,et al.  A new method for location selection: A hybrid analysis , 2008, Appl. Math. Comput..

[29]  Ankur Chauhan,et al.  A hybrid multi-criteria decision making method approach for selecting a sustainable location of healthcare waste disposal facility , 2016 .

[30]  Yaodong Hu,et al.  Fuzzy Multi-criteria Decision-making TOPSIS for Distribution Center Location Selection , 2009, 2009 International Conference on Networks Security, Wireless Communications and Trusted Computing.

[31]  Vipul Jain,et al.  An integrated approach for machine tool selection using fuzzy analytical hierarchy process and grey relational analysis , 2012 .

[32]  Semih Onüt,et al.  Transshipment site selection using the AHP and TOPSIS approaches under fuzzy environment. , 2008, Waste management.

[33]  Fatih Tüysüz,et al.  Modified Grey Relational Analysis Integrated with Grey Dematel Approach for the Performance Evaluation of Retail Stores , 2016, Int. J. Inf. Technol. Decis. Mak..

[34]  Chang Xiang-yun,et al.  A Fuzzy-based Location Selection Method for Reverse Logistics Reprocessing Center , 2006, 2006 International Conference on Management Science and Engineering.

[35]  Chao-Ton Su,et al.  Location selection using fuzzy-connective-based aggregation networks: a case study of the food and beverage chain industry in Taiwan , 2014, Neural Computing and Applications.

[36]  M. S. García-Cascales,et al.  GIS-based onshore wind farm site selection using Fuzzy Multi-Criteria Decision Making methods. Evaluating the case of Southeastern Spain , 2016 .

[37]  Ching-Ter Chang,et al.  On the location selection problem using analytic hierarchy process and multi-choice goal programming , 2013, Int. J. Syst. Sci..

[38]  Xiaona Song,et al.  Comprehensive evaluation of coal-fired power plants based on grey relational analysis and analytic hierarchy process , 2011 .

[39]  Fatih Tüysüz,et al.  ANALYSIS OF THE FACTORS AFFECTING PERFORMANCE EVALUATION OF BRANCHES IN A CARGO COMPANY BY USING HESITANT FUZZY AHP , 2016 .

[40]  Michael Kuby,et al.  Regionalism in US retailing , 2013 .

[41]  Rajeev Srivastava,et al.  Comparison of Two Different Rapid Prototyping System Based on Dimensional Performance Using Grey Relational Grade Method , 2016 .

[42]  Doriana M. D’Addona,et al.  Multi-objective Optimization of High Speed Turning of Al 7075 Using Grey Relational Analysis☆ , 2015 .

[43]  Kun-Tzu Yu,et al.  A generalized fuzzy approach for strategic problems: The empirical study on facility location selection of authors' management consultation client as an example , 2009, Expert Syst. Appl..

[44]  H. Hotelling.  Stability in Competition , 1929 .

[45]  Da Ruan,et al.  Fuzzy group decision-making for facility location selection , 2003, Inf. Sci..

[46]  Abdollah Hadi-Vencheh,et al.  A new fuzzy TOPSIS method based on left and right scores: An application for determining an industrial zone for dairy products factory , 2012, Appl. Soft Comput..

[47]  Hsin-Hung Wu,et al.  A Comparative Study of Using Grey Relational Analysis in Multiple Attribute Decision Making Problems , 2002 .

[48]  C. Clarke‐Hill,et al.  UK supermarket location assessment , 1996 .

[49]  Yasanur Kayikci,et al.  A conceptual model for intermodal freight logistics centre location decisions , 2010 .

[50]  Mei Hong,et al.  Hesitant analytic hierarchy process , 2016, Eur. J. Oper. Res..

[51]  H. N. Narasimha Murthy,et al.  Influence of nanofillers on the quality of CO2 laser drilling in vinylester/glass using Orthogonal Array Experiments and Grey Relational Analysis , 2015 .

[52]  Ming-Shin Kuo,et al.  Optimal location selection for an international distribution center by using a new hybrid method , 2011, Expert Syst. Appl..

[53]  Jean-Blaise Eckert,et al.  Food systems, planning and quantifying access: Using GIS to plan for food retail , 2011 .

[54]  Zeshui Xu,et al.  Distance and similarity measures for hesitant fuzzy sets , 2011, Inf. Sci..

[55]  Pankaj Gupta,et al.  Intuitionistic fuzzy multi-attribute group decision-making with an application to plant location selection based on a new extended VIKOR method , 2016, Inf. Sci..

[56]  V. Torra,et al.  A framework for linguistic logic programming , 2010 .

[57]  Tsu-Ming Yeh,et al.  Factors in determining wind farm location: Integrating GQM, fuzzy DEMATEL, and ANP , 2014 .

[58]  Gui-Wu Wei,et al.  Grey relational analysis method for 2-tuple linguistic multiple attribute group decision making with incomplete weight information , 2011, Expert Syst. Appl..

[59]  S. K. Goyal,et al.  A multi-criteria decision making approach for location planning for urban distribution centers under uncertainty , 2011, Math. Comput. Model..

[60]  Aysenur Budak,et al.  Fuzzy decision making model for selection of real time location systems , 2015, Appl. Soft Comput..

[61]  Cengiz Kahraman,et al.  A Fuzzy Multi-Criteria Decision Analysis Approach for Retail Location Selection , 2013, Int. J. Inf. Technol. Decis. Mak..

[62]  Rupesh Kumar Pandey,et al.  Optimization of multiple quality characteristics in bone drilling using grey relational analysis. , 2015, Journal of orthopaedics.

[63]  Golam Kabir,et al.  Power substation location selection using fuzzy analytic hierarchy process and PROMETHEE: A case study from Bangladesh , 2014 .

[64]  Ali Fuat Guneri,et al.  A fuzzy ANP approach to shipyard location selection , 2009, Expert Syst. Appl..

[65]  Cengiz Kahraman,et al.  Hesitant fuzzy analytic hierarchy process , 2015, 2015 IEEE International Conference on Fuzzy Systems (FUZZ-IEEE).

[66]  Deng Ju-Long,et al.  Control problems of grey systems , 1982 .

[67]  Martin Clarke,et al.  Retail Geography and Intelligent Network Planning , 2002 .

[68]  Murat Sarıkaya,et al.  Multi-response optimization of minimum quantity lubrication parameters using Taguchi-based grey relational analysis in turning of difficult-to-cut alloy Haynes 25 , 2015 .

[69]  T. V. Jayaraman,et al.  The optimization of chemical mechanical planarization process-parameters of c-plane gallium-nitride using Taguchi method and grey relational analysis , 2016 .

[70]  Chao Huang,et al.  A hybrid approach using two-level DEA for financial failure prediction and integrated SE-DEA and GCA for indicators selection , 2015, Appl. Math. Comput..

[71]  Rafael Suárez-Vega,et al.  Location models and GIS tools for retail site location , 2012 .

[72]  Eda Boltürk,et al.  Hospital Site Selection via Hesitant Fuzzy TOPSIS , 2016 .

[73]  J. Lilly Mercy,et al.  Optimization of Drilling Characteristics using Grey Relational Analysis (GRA) in Medium Density Fiber Board (MDF) , 2015 .

[74]  Gin-Shuh Liang,et al.  A novel hybrid decision-making model for selecting locations in a fuzzy environment , 2011, Math. Comput. Model..

[75]  Ying Wang,et al.  Selecting a cruise port of call location using the fuzzy-AHP method: A case study in East Asia , 2014 .

[76]  Abbas Alimohammadi,et al.  Hospital site selection using fuzzy AHP and its derivatives. , 2009, Journal of environmental management.

[77]  Zeshui Xu,et al.  Analytic hierarchy process-hesitant group decision making , 2014, Eur. J. Oper. Res..

[78]  Haris Ch. Doukas,et al.  A linguistic multicriteria analysis system combining fuzzy sets theory, ideal and anti-ideal points for location site selection , 2008, Expert Syst. Appl..

[79]  Kiran Karande,et al.  Location strategies of broad-line retailers: an empirical investigation , 2005 .

[80]  Eren Özceylan,et al.  GIS-based fuzzy MCDA approach for siting refugee camp: A case study for southeastern Turkey , 2016 .

[81]  Cemal Zehir,et al.  Literature Review on Selection Criteria of Store Location Based on Performance Measures , 2013 .

[82]  Chong Wu,et al.  Evaluating corporate social responsibility of airlines using entropy weight and grey relation analysis , 2015 .

[83]  Francisco Herrera,et al.  Hesitant Fuzzy Linguistic Term Sets for Decision Making , 2012, IEEE Transactions on Fuzzy Systems.

[84]  Cengiz Kahraman,et al.  Fuzzy multicriteria disposal method and site selection for municipal solid waste. , 2010, Waste management.

[85]  Gang Chen,et al.  Semi-Supervised Regression for Evaluating Convenience Store Location , 2009, IJCAI.

[86]  Ta-Chung Chu,et al.  Facility Location Selection Using Fuzzy TOPSIS Under Group Decisions , 2002, Int. J. Uncertain. Fuzziness Knowl. Based Syst..

[87]  R. M. Chandima Ratnayake,et al.  Enhancing offshore process safety by selecting fatigue critical piping locations for inspection using Fuzzy-AHP based approach , 2016 .

[88]  Tanveer Hussain,et al.  Multi-response optimization in the development of oleo-hydrophobic cotton fabric using Taguchi based grey relational analysis , 2016 .

[89]  Daoqin Tong,et al.  Enhancing Classic Coverage Location Models , 2010 .

[90]  Cathy Banwell,et al.  Traditional, modern or mixed? Perspectives on social, economic, and health impacts of evolving food retail in Thailand , 2015, Agriculture and human values.

[91]  W. Reilly.  The law of retail gravitation , 1931 .

[92]  Heng Li,et al.  The analytic network process (ANP) approach to location selection: a shopping mall illustration , 2005 .

[93]  Pedro Godinho,et al.  Portuguese food retailers – Exploring three classic theories of retail location , 2017 .

[94]  Chin-Tsai Lin,et al.  Integrated environmental assessment of the location selection with fuzzy analytical network process , 2009 .

[95]  Ju Xiao,et al.  Optimization of a biomass briquette fuel system based on grey relational analysis and analytic hierarchy process: A study using cornstalks in China , 2015 .

[96]  David L. Huff,et al.  Defining and Estimating a Trading Area , 1964 .

[97]  Gülçin Büyüközkan,et al.  A new hesitant fuzzy QFD approach: An application to computer workstation selection , 2016, Appl. Soft Comput..

[98]  Han Zhiqiang,et al.  Practical state of health estimation of power batteries based on Delphi method and grey relational grade analysis , 2015 .

[99]  Keith W. Hipel,et al.  An improved grey relational analysis approach for panel data clustering , 2015, Expert Syst. Appl..

[100]  Cengiz Kahraman,et al.  Multi-criteria evaluation of alternative-fuel vehicles via a hierarchical hesitant fuzzy linguistic model , 2015, Expert Syst. Appl..

[101]  Bian Ka,et al.  Application of Fuzzy AHP and ELECTRE to China Dry Port Location Selection , 2011 .

[102]  Vicenç Torra,et al.  On hesitant fuzzy sets and decision , 2009, 2009 IEEE International Conference on Fuzzy Systems.

[103]  Zeshui Xu,et al.  Asymmetric hesitant fuzzy sigmoid preference relations in the analytic hierarchy process , 2016, Inf. Sci..

[104]  Eun-Sung Chung,et al.  Development of fuzzy multi-criteria approach to prioritize locations of treated wastewater use considering climate change scenarios. , 2014, Journal of environmental management.

[105]  Luigi Mazza,et al.  Urban Sustainability: discourses, networks and policy tools' , 1997 .

[106]  Sukhomay Pal,et al.  Multi-response optimization of process parameters in friction stir welded AM20 magnesium alloy by Taguchi grey relational analysis , 2015 .

[107]  İrfan Ertuğrul,et al.  Comparison of fuzzy AHP and fuzzy TOPSIS methods for facility location selection , 2008 .

[108]  R. J. Kuo,et al.  A decision support system for selecting convenience store location through integration of fuzzy AHP and artificial neural network , 2002, Comput. Ind..