Date: 27 Oct 2007

Comparison of fuzzy AHP and fuzzy TOPSIS methods for facility location selection

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Abstract

Facility location selection is a multi-criteria decision problem and has a strategic importance for many companies. The conventional methods for facility location selection are inadequate for dealing with the imprecise or vague nature of linguistic assessment. To overcome this difficulty, fuzzy multi-criteria decision-making methods are proposed. The aim of this study is to use fuzzy analytic hierarchy process (AHP) and the fuzzy technique for order preference by similarity to ideal solution (TOPSIS) methods for the selection of facility location. The proposed methods have been applied to a facility location selection problem of a textile company in Turkey. After determining the criteria that affect the facility location decisions, fuzzy AHP and fuzzy TOPSIS methods are applied to the problem and results are presented. The similarities and differences of two methods are also discussed.