Retail Chain Stores Location using Integrated Interval-Valued Intuitionistic Fuzzy AHP and TOPSIS: Case Study Ofogh Kourosh Stores

Document Type : Original Article

Authors

1 PhD student, Department of Industrial Engineering, Faculty of Technology and Engineering, Al-Zahra University, Tehran, Iran.

2 Associate Professor, Department of Industrial Engineering, Faculty of Technology and Engineering, Al-Zahra University, Tehran, Iran.

10.48308/jimp.2024.230537.1421

Abstract

Retailers are one of the most powerful agents of product distribution due to their proximity to final consumers and the potential to create a market. Choosing the location of the retail store is a strategic decision and a long-term investment, both in terms of customer satisfaction and the profitability of the company in the conditions of market change and fierce competition. Considering the increasing complexity of the problem by combining different criteria in choosing the location of the retail store, it is inevitable to use multi-criteria decision-making structure. On the other hand, due to uncertainty in the evaluation of these criteria, exact methods cannot be used for decision making. In this study, locations of chain stores problem have been investigated using fuzzy multi-criteria decision-making methods in order to choose the right locations for the construction of new retail facilities in competitive conditions. The purpose of this study is to develop a method to select the most optimal retail store location through strategic ranking of potential store locations using criteria such as population, store location characteristics, economic considerations, and competition. In this study, the integrated Analytical Hierarchy Process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) based on Interval-Valued Intuitionistic Fuzzy Sets is used. This method was applied in Ofogh-Kourosh chain stores in order to choose the most appropriate location of new retail stores.

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