Group Decision and Negotiation

, Volume 22, Issue 4, pp 773–799 | Cite as

A Multi-Criteria Group Decision Framework for Partner Grouping When Sharing Facilities

  • Alessio IshizakaEmail author
  • Philippe Nemery


The site location is an important strategic decision for a company and usually incorporates several conflicting criteria. Therefore, multicriteria decisions methods are more and more used in this context. On the same time, another increasing trend is cooperative relationships where partners or even rivals work together to collectively enhance their performances by sharing resources. This paper presents a novel multi-phase approach to aid partners to address the following questions in the location problem context: ‘Where and with whom should the company locate its business?’ A case study is described where final year students are looking for a flat to share in London.


Group decisions and negotiations Multiple criteria analysis Location selection Partner grouping PROMETHEE PROMETHEE GDSS 


Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.


  1. Aragonés-Beltrán P, Pastor-Ferrando J-P, García-García F, Pascual-Agulló A (2010) An analytic network process approach for siting a municipal solid waste plant in the metropolitan area of Valencia (Spain). J Environ Manag 91(5): 1071–1086CrossRefGoogle Scholar
  2. Aras H, Erdogmus S, Koç E (2004) Multi-criteria selection for a wind observation station location using analytic hierarchy process. Renew Energy 29(8): 1383–1392CrossRefGoogle Scholar
  3. Badri M (1999) Combining the analytic hierarchy process and goal programming for global facility location-allocation problem. Int J Prod Econ 62(3): 237–248CrossRefGoogle Scholar
  4. Barda OH, Dupuis J, Lencioni P (1990) Multicriteria location of thermal power plants. Eur J Oper Res 45(2/3): 332–346CrossRefGoogle Scholar
  5. Bask A (2001) Relationships among TPL providers and members of supply chains—a strategic perspective. J Bus Ind Mark 16(6): 470–486CrossRefGoogle Scholar
  6. Behzadian M, Kazemzadeh RB, Albadvi A, Aghdasi M (2010) PROMETHEE: a comprehensive literature review on methodologies and applications. Eur J Oper Res 200(1): 198–215CrossRefGoogle Scholar
  7. Bengtsson M, Kock S (2000) “Coopetition” in business networks–to cooperate and compete simultaneously. Ind Mark Manag 29(5): 411–426CrossRefGoogle Scholar
  8. Brans J-P (1982) L’ingénierie de la décision: Elaboration d’instruments d’aide à la décision. In: Nadeaeu R, Landry M (eds) L’aide à la décision: nature, instruments et perspectives d’avenir. Presse de l’Université de Laval, Québec, pp 183–213Google Scholar
  9. Brans J-P, Mareschal B (2005) PROMETHEE methods. In: Figueira J, Greco S, Ehrgott M (eds) Multiple criteria decision analysis: state of the art surveys. Springer, New YorkGoogle Scholar
  10. Brans J-P, Vincke P (1985) A preference ranking organisation method. Manag Sci 31(6): 647–656CrossRefGoogle Scholar
  11. Canbolat YB, Chelst K, Garg N (2007) Combining decision tree and MAUT for selecting a country for a global manufacturing facility. Omega 35(3): 312–325CrossRefGoogle Scholar
  12. Carmone F, Kara A, Zanakis S (1997) A Monte Carlo investigation of incomplete pairwise comparison matrices in AHP. Eur J Oper Res 102(3): 538–553CrossRefGoogle Scholar
  13. Chan FTS, Kumar N, Choy KL (2007) Decision-making approach for the distribution centre location problem in a supply chain network using the fuzzy-based hierarchical concept. Proc Inst Mech Eng Part B Eng Manuf 221(4): 725–739CrossRefGoogle Scholar
  14. Chen-Tung C (2000) Extensions of the TOPSIS for group decision-making under fuzzy environment. Fuzzy Sets Syst 114(1): 1–9. doi: 10.1016/s0165-0114(97)00377-1 CrossRefGoogle Scholar
  15. Chen C-F (2006) Applying the analytical hierarchy process (AHP) approach to convention site selection. J Travel Res 45(2): 167–174CrossRefGoogle Scholar
  16. Chen C-T (2001) A fuzzy approach to select the location of the distribution center. Fuzzy Sets Syst 118(1): 65–73CrossRefGoogle Scholar
  17. Chevalier A, Kunsch P, Brans J (2004) A contribution to the development of strategic control and planning instruments: an acquisition case study. Int Trans Oper Res 11(2): 155–168CrossRefGoogle Scholar
  18. Chou C-C (2007) A fuzzy MCDM method for solving marine transshipment container port selection problems. Appl Math Comput 186(1): 435–444CrossRefGoogle Scholar
  19. Chou T-Y, Hsu C-L, Chen M-C (2008) A fuzzy multi-criteria decision model for international tourist hotels location selection. Int J Hosp Manag 27(2): 293–301CrossRefGoogle Scholar
  20. Colson G (2000) The OR’s prize winner and the software ARGOS: how a multijudge and multicriteria ranking GDSS helps a jury to attribute a scientific award. Comput Oper Res 27(7–8): 741–755CrossRefGoogle Scholar
  21. Corsten D, Kumar N (2005) Do suppliers benefit from collaborative relationships with large retailers? An empirical investigation of efficient consumer response adoption. J Mark 69(3): 80–94CrossRefGoogle Scholar
  22. Costa J, Melo P, Godinho P, Dias L (2003) The AGAP system: a GDSS for project analysis and evaluation. Eur J Oper Res 145(2): 287–303CrossRefGoogle Scholar
  23. De Keyser W, Peeters P (1996) A note on the use of PROMETHEE multicriteria methods. Eur J Oper Res 89(3): 457–461CrossRefGoogle Scholar
  24. DeSanctis G, Poole M, Zigurs I, Associates O (2008) The Minnesota GDSS research project: group support systems, group pocesses, and otcomes. J Assoc Inf Syst 9(10/11): 551–608Google Scholar
  25. Dias L, Mousseau V (2006) Inferring electre’s veto-related parameters from outranking examples. Eur J Oper Res 170(1): 172–191CrossRefGoogle Scholar
  26. Duque R, Rodríguez M, Hurtado M, Bravo C, Rodríguez-Domínguez C (2012) Integration of collaboration and interaction analysis mechanisms in a concern-based architecture for groupware systems. Sci Comput Program 77(1): 29–45CrossRefGoogle Scholar
  27. Ertuğrul I, Karakaşoğlu N (2008) Comparison of fuzzy AHP and fuzzy TOPSIS methods for facility location selection. Int J Adv Manuf Technol 39(7): 783–795CrossRefGoogle Scholar
  28. Fan S, Shen Q (2011) The effect of using group decision support systems in value management studies: an experimental study in Hong Kong. Int J Proj Manag 29(1): 13–25CrossRefGoogle Scholar
  29. Farahani RZ, SteadieSeifi M, Asgari N (2010) Multiple criteria facility location problems: a survey. Appl Math Model 34(7): 1689–1709CrossRefGoogle Scholar
  30. Fernández I, Ruiz MC (2009) Descriptive model and evaluation system to locate sustainable industrial areas. J Clean Prod 17(1): 87–100CrossRefGoogle Scholar
  31. Ghafghazi S, Sowlati T, Sokhansanj S, Melin S (2010) A multicriteria approach to evaluate district heating system options. Appl Energy 87(4): 1134–1140CrossRefGoogle Scholar
  32. Giannoulis C, Ishizaka A (2010) A Web-based decision support system with ELECTRE III for a personalised ranking of British universities. Decis Support Syst 48(3): 488–497CrossRefGoogle Scholar
  33. Gilliams S, Raymaekers D, Muys B, Van Orshoven J (2005) Comparing multiple criteria decision methods to extend a geographical information system on afforestation. Comput Electron Agric 49(1): 142–158CrossRefGoogle Scholar
  34. Gordon A (1987) A review of hierarchical classification. J R Stat Soc Ser A 150(2): 119–137CrossRefGoogle Scholar
  35. Halldorsson A, Skjøtt-Larsen T (2006) Dynamics of relationship governance in TPL arrangements—a dyadic perspective. Int J Phys Distrib Logist Manag 36(7): 490–506CrossRefGoogle Scholar
  36. Halouani N, Chabchoub H, Martel J (2009) PROMETHEE-MD-2T method for project selection. Eur J Oper Res 195(3): 841–849CrossRefGoogle Scholar
  37. Hammervoll T (2009) Channel cooperation: a reflective scale. Int J Logist Manag 20(3): 301–321CrossRefGoogle Scholar
  38. Hegde GG, Tadikamalla PR (1990) Site selection for a ‘sure service terminal’. Eur J Oper Res 48(1): 77–80CrossRefGoogle Scholar
  39. Hermans C, Erickson J, Noordewier T, Sheldon A, Kline M (2007) Collaborative environmental planning in river management: An application of multicriteria decision analysis in the White River Watershed in Vermont. J Environ Manag 84(4): 534–546CrossRefGoogle Scholar
  40. Higgs G (2006) Integrating multi-criteria techniques with geographical information systems in waste facility location to enhance public participation. Waste Manag Res 24(2): 105–117CrossRefGoogle Scholar
  41. Hokkanen J, Salminen P (1997) Locating a waste treatment facility by multicriteria analysis. J Multi- Criteria Decis Anal 6(3): 175–184CrossRefGoogle Scholar
  42. Ishizaka A, Labib A (2009) Analytic hierarchy process and expert choice: benefits and limitations. OR Insight 22(4): 201–220CrossRefGoogle Scholar
  43. Ishizaka A, Labib A (2011) Selection of new production facilities with the group analytic hierarchy process ordering method. Expert Syst Appl 38(6): 7317–7325CrossRefGoogle Scholar
  44. Ishizaka A, Nemery P (2011) Selecting the best statistical distribution with PROMETHEE and GAIA. Comput Ind Eng 61(4): 958–969CrossRefGoogle Scholar
  45. Jain A (2010) Data clustering: 50 years beyond K-means. Pattern Recognit Lett 31(8): 651–666CrossRefGoogle Scholar
  46. Jain A, Murty M, Flynn P (1999) Data clustering: a review. ACM Comput Surv 31(3): 264–323CrossRefGoogle Scholar
  47. Kaboli A, Aryanezhad M, Shahanaghi K, Tavakkoli-Moghaddam R (2007) A holistic approach based on MCDM for solving location problems. Int J Eng Trans Basic 20(3): 251–262Google Scholar
  48. Kadziński M, Greco S, SŁowiński R (2012) Extreme ranking analysis in robust ordinal regression. Omega 40(4): 488–501CrossRefGoogle Scholar
  49. Kahraman C, Ruan D, Dogan I (2003) Fuzzy group decision-making for facility location selection. Inf Sci 157: 135–153CrossRefGoogle Scholar
  50. Karkazis J (1989) Facilities location in a competitive environment: a promethee based multiple criteria analysis. Eur J Oper Res 42(3): 294–304CrossRefGoogle Scholar
  51. Kim S-K, Song O (2009) A MAUT approach for selecting a dismantling scenario for the thermal column in KRR-1. Ann Nucl Energy 36(2): 145–150CrossRefGoogle Scholar
  52. King B (1967) Step-wise clustering procedures. J Am Stat Assoc 69(317): 86–101CrossRefGoogle Scholar
  53. Kirkwood C (1982) A case history of nuclear power plant site selection. J Oper Res Soc 33(4): 353–363Google Scholar
  54. Kirsch-Pinheiro M, Valdenide Lima J, Borges M (2003) A framework for awareness support in groupware systems. Comput Ind 52(1): 47–57CrossRefGoogle Scholar
  55. Kleinberg J (2002) An impossibility theorem for clustering. In: Becker S, Thrun S, Obermayer K (eds) Proceedings of the 15th conference neural information processing systems, advances in neural information processing systems 2002, pp 446–453Google Scholar
  56. Kuo R, Chi S, Kao S (1999) A decision support system for locating convenience store through fuzzy AHP. Comput Ind Eng 37(1-2): 323–326CrossRefGoogle Scholar
  57. Kuo R, Chi S, Kao S (2002) A decision support system for selecting convenience store location through integration of fuzzy AHP and artificial neural network. Comput Ind 47(2): 199–214CrossRefGoogle Scholar
  58. Lahdelma R, Salminen P, Hokkanen J (2002) Locating a waste treatment facility by using stochastic multicriteria acceptability analysis with ordinal criteria. Eur J Oper Res 142(2): 345–356CrossRefGoogle Scholar
  59. Leyva-Lopez JC, Fernandez-Gonzalez E (2003) A new method for group decision support based on ELECTRE III methodology. Eur J Oper Res 148(1): 14CrossRefGoogle Scholar
  60. Liang G-S, Wang M-J (1991) A fuzzy multi-criteria decision-making method for facility site selection. Int J Prod Res 29(11): 2313–2330CrossRefGoogle Scholar
  61. Lorentz H (2008) Production locations for the internationalising food industry: case study from Russia. British Food J 110(3): 310–334CrossRefGoogle Scholar
  62. Luo Y (2007) A coopetition perspective of global competition. J World Bus 42(2): 129–144CrossRefGoogle Scholar
  63. Lusch R, Brown J (1996) Interdependency, contracting, and relational behavior in marketing channels. J Mark 60(4): 19–38CrossRefGoogle Scholar
  64. Macharis C, Brans J, Mareschal B (1998) The GDSS PROMETHEE procedure—a PROMETHEE-GAIA based procedure for group decision support. J Decis Syst 7: 283–307Google Scholar
  65. Macharis C, De Witte A, Ampe J (2009) The multi-actor, multi-criteria analysis methodology (MAMCA) for the evaluation of transport projects: theory and practice. J Adv Transp 43(2): 183–202CrossRefGoogle Scholar
  66. Macharis C, De Witte A, Turcksin L (2010) The multi-actor multi-criteria analysis (MAMCA) pplication in the Flemish long-term decision making process on mobility and logistics. Transp Policy 17(5): 303–311CrossRefGoogle Scholar
  67. Mareschal B, Brans J-P (1988) Geometrical representations for MCDA. Eur J Oper Res 34(1): 69–77CrossRefGoogle Scholar
  68. Mareschal B, De Smet Y, Nemery P (2008) Rank reversal in the PROMETHEE II method: some new results. Paper presented at the IEEE 2008 international conference on industrial engineering and engineering management, Singapore (2008)Google Scholar
  69. Milligan G, Cooper M (1985) An examination of procedures for determining the number of clusters in a data set. Psychometrika 50(2): 159–179CrossRefGoogle Scholar
  70. Min H (1994) Location analysis of international consolidation terminals using the analytic hierarchy process. J Bus Logist 15(2): 25–44Google Scholar
  71. Min H (1994) Location planning of airport facilities using the analytic hierarchy process. Logist Transp Rev 30(1): 79–94Google Scholar
  72. Min H, Melachrinoudis E (1999) The relocation of a hybrid manufacturing/distribution facility from supply chain perspectives: a case study. Omega 27(1): 75–85CrossRefGoogle Scholar
  73. Mirkin B (2011) Choosing the number of clusters. Wiley Interdiscip Rev Data Min Knowl Discov 1(3): 252–260CrossRefGoogle Scholar
  74. Mladineo N, Margeta J, Brans J, Mareschal B (1987) Multicriteria ranking of alternative locations for small scale hydro plants. Eur J Oper Res 31(2): 215–222CrossRefGoogle Scholar
  75. Nagy G (1968) State of the art in pattern recognition. Proc IEEE 56(5): 836–857CrossRefGoogle Scholar
  76. Norese MF. (2006) ELECTRE III as a support for participatory decision-making on the localisation of waste-treatment plants. Land Use Policy 23(1): 76–85CrossRefGoogle Scholar
  77. Önüt S, Efendigil T, Soner Kara S (2010) A combined fuzzy MCDM approach for selecting shopping center site: an example from Istanbul, Turkey. Expert Syst Appl 37(3): 1973–1980CrossRefGoogle Scholar
  78. Osborn A (1963) Applied imagination: principles and procedures of creative problem-solving, 3rd edn. Scribner’s, New YorkGoogle Scholar
  79. Ou C-W, Chou S-Y (2009) International distribution center selection from a foreign market perspective using a weighted fuzzy factor rating system. Expert Syst Appl 36(2, Part 1): 1773–1782CrossRefGoogle Scholar
  80. Pavić I, Babić Z (1991) The use of the PROMETHEE method in the location choice of a production system. Int J Prod Econ 23(1–3): 165–174CrossRefGoogle Scholar
  81. Penichet V, Lozano M, Gallud J, Tesoriero R (2009) User interface analysis for groupware applications in the TOUCHE process model. Adv Eng Softw 40(12): 1212–1222CrossRefGoogle Scholar
  82. Petroni A (2000) The logistics of industrial location decisions: an application of the analytic hierarchy process methodology. Int J Logist Res Appl 3(3): 273–289CrossRefGoogle Scholar
  83. Reichel A, Mehrez A, Altman S (1998) Neve-Ilan, Israel: a site selection and business feasibility case study. Tour Manag 19(2): 161–170CrossRefGoogle Scholar
  84. ReVelle C, Eiselt H (2005) Location analysis: a synthesis and survey. Eur J Oper Res 165(1): 1–19CrossRefGoogle Scholar
  85. ReVelle C, Eiselt H, Daskin M (2008) A bibliography for some fundamental problem categories in discrete location science. Eur J Oper Res 184(3): 817–848CrossRefGoogle Scholar
  86. Ritala P, Hurmelinna-Laukkanen P (2009) What’s in it for me? Creating and appropriating value in innovation-related coopetition. Technovation 29(12): 819–828CrossRefGoogle Scholar
  87. Saaty, T (ed) (1989) Group decision making and the AHP. Springer, BerlinGoogle Scholar
  88. Salo A, Hämäläinen P (2010) Multicriteria decision analysis in group decision process. In: Kilgour M, Eden C (eds) Handbook of group decison and negotiation, vol 4. Springer, New York, pp 269–283CrossRefGoogle Scholar
  89. Schuwirth N, Reichert P, Lienert, J (2012) Methodological aspects of multi-criteria decision analysis for policy support: a case study on pharmaceutical removal from hospital wastewater. Eur J Oper Res Adv (online publication). doi: 10.1016/j.ejor.2012.01.055
  90. Shen C-Y, Yu K-T (2009) A generalized fuzzy approach for strategic problems: the empirical study on facility location selection of authors’ management consultation client as an example. Expert Syst Appl 36(3, Part 1): 4709–4716CrossRefGoogle Scholar
  91. Sinuany-Stern Z, Mehrez A, Tal A-G, Shemuel B (1995) The location of a hospital in a rural region: the case of the Negev. Locat Sci 3(4): 255–266CrossRefGoogle Scholar
  92. Siskos J, Hubert P (1983) Multi-criteria analysis of the impacts of energy alternatives: a survey and a new comparative approach. Eur J Oper Res 13(3): 278–299CrossRefGoogle Scholar
  93. Skjoett-Larsen T (2000) Third party logistics—from an interorganizational point of view. Int J Phys Distrib Logist Manag 30(2): 112–127CrossRefGoogle Scholar
  94. Smith H, Laporte G, Harper P (2009) Locational analysis: highlights of growth to maturity. J Oper Res Soc 60(1): 140–148CrossRefGoogle Scholar
  95. Sneath P, Sokal R (1973) Numerical taxonomy. Freeman, LondonGoogle Scholar
  96. Steinhaus H (1956) Sur la division des corps matériels en parties. Bull Acad Pol Sci IV(12): 801–804Google Scholar
  97. Tabari M, Kaboli A, Aryanezhad M, Shahanaghi K, Siadat A (2008) A new method for location selection: a hybrid analysis. Appl Math Comput 206(2): 598–606CrossRefGoogle Scholar
  98. Tofallis C (2008) Selecting the best statistical distribution using multiple criteria. Comput Ind Eng 54(3): 690–694CrossRefGoogle Scholar
  99. Turcksin L, Macharis C, Lebeau K, Boureima F, Van Mierlo J, Bram S, De Ruyck J, Mertens L, Jossart J-M, Gorissen L, Pelkmans L (2011) A multi-actor multi-criteria framework to assess the stakeholder support for different biofuel options: the case of Belgium. Energy Policy 39(1): 200–214CrossRefGoogle Scholar
  100. Tuzkaya G, Önüt S, Tuzkaya U, Gülsün B (2008) An analytic network process approach for locating undesirable facilities: an example from Istanbul, Turkey. J Environ Manag 88(4): 970–983CrossRefGoogle Scholar
  101. Tzeng G-H, Teng M-H, Chen J-J, Opricovic S (2002) Multicriteria selection for a restaurant location in Taipei. Int J Hosp Manag 21(2): 171–187CrossRefGoogle Scholar
  102. Vlachopoulou M, Silleos G, Manthou V (2001) Geographic information systems in warehouse site selection decisions. Int J Prod Econ 71(1-3): 205–212CrossRefGoogle Scholar
  103. Vuk D, Koželj B, Mladineo N (1991) Application of multicriterional analysis on the selection of the location for disposal of communal waste. Eur J Oper Res 55(2): 211–217CrossRefGoogle Scholar
  104. Walther G, Spengler T, Queiruga D (2008) Facility location planning for treatment of large household appliances in Spain. Int J Environ Technol Manag 8(4): 405–425CrossRefGoogle Scholar
  105. Weiss E, Rao V (1987) AHP design issues for large-scale systems. Decis Sci 18(1): 43–57CrossRefGoogle Scholar
  106. Wilson D (1995) An integrated model of buyer-seller relationships. J Acad Mark Sci 23(4): 335–345CrossRefGoogle Scholar
  107. Wu C-R, Lin C-T, Chen H-C (2007) Optimal selection of location for Taiwanese hospitals to ensure a competitive advantage by using the analytic hierarchy process and sensitivity analysis. Build Environ 42(3): 1431–1444CrossRefGoogle Scholar
  108. Yang J, Lee H (1997) An AHP decision model for facility location selection. Facilities 15(9/10): 241–254CrossRefGoogle Scholar
  109. Yong D (2006) Plant location selection based on fuzzy TOPSIS. Int J Adv Manuf Technol 28(7): 839–844CrossRefGoogle Scholar
  110. Yurimoto S, Masui T (1995) Design of a decision support system for overseas plant location in the EC. Int J Prod Econ 41(1–3): 411–418CrossRefGoogle Scholar
  111. Zhongliang Y (2012) Extension of TOPSIS to determine weight of decision maker for group decision making problems with uncertain information. Expert Syst Appl 39(7): 6343–6350CrossRefGoogle Scholar

Copyright information

© Springer Science+Business Media B.V. 2012

Authors and Affiliations

  1. 1.Portsmouth Business SchoolUniversity of PortsmouthPortsmouthUK
  2. 2.Smart-PickerBrusselsBelgium

Personalised recommendations