Facility Location Selection with Integrated Fuzzy AHP and Fuzzy VIKOR Methods

Abstract

The reason for the existence of every profit-oriented business is to operate with maximum benefit. Strategic decisions are essential in achieving maximum benefit. These decisions affect companies in the long run, and if companies make mistakes, high costs can occur. One of the strategic decisions is the choice of facility location. The facility location investment should result in a profitable outcome in line with the goals of the decision-makers. In this study, the facility location selection problem of Ark Pres Safety Belts A.Ş. Company is discussed. The fact that decision-makers in the business do not make a single decision at the criteria's importance levels has complicated problems. “Fuzzy Analytical Hierarchy Process (FAHP)” and “Fuzzy Multi-Criteria Optimization and Compromise Solution (VIKOR)” methods are applied for the solution. With Fuzzy AHP, the criteria are weighted in line with the evaluations of the decision-makers, and with Fuzzy VIKOR, the alternatives are listed, and selection is made using these weights. In the study, the cost is set as the most critical weight of the main criterion, and labor cost is set as the most important of the sub-criteria weights. As a result of the application, Kocaeli - Arslanbey Organized Industrial Zone is chosen as the most suitable facility location of the enterprise among the five alternatives.