Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 30123
Analytic Network Process in Location Selection and Its Application to a Real Life Problem

Authors: Eylem Koç, Hasan Arda Burhan


Location selection presents a crucial decision problem in today’s business world where strategic decision making processes have critical importance. Thus, location selection has strategic importance for companies in boosting their strength regarding competition, increasing corporate performances and efficiency in addition to lowering production and transportation costs. A right choice in location selection has a direct impact on companies’ commercial success. In this study, a store location selection problem of Carglass Turkey which operates in vehicle glass branch is handled. As this problem includes both tangible and intangible criteria, Analytic Network Process (ANP) was accepted as the main methodology. The model consists of control hierarchy and BOCR subnetworks which include clusters of actors, alternatives and criteria. In accordance with the management’s choices, five different locations were selected. In addition to the literature review, a strict cooperation with the actor group was ensured and maintained while determining the criteria and during whole process. Obtained results were presented to the management as a report and its feasibility was confirmed accordingly.

Keywords: Analytic Network Process, BOCR, location selection, multi-actor decision making, multi-criteria decision making, real life problem.

Digital Object Identifier (DOI):

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 1469


[1] G. Turhan, M. Akalın and C. Zehir, “Literature review on selection criteria of store location based on performance levels”, Procedia-Social and Behavioral Sciences, vol. 99, pp. 391–402, 2013.
[2] W. J. Stevenson, Production/Operations Management. USA: Irwin Professional Publishing, 1993, ch. 2.
[3] S. H. Owen and M. S. Daskin, “Strategic facility location: A review”, European Journal of Operational Research, vol. 111, pp. 423-447, April 1998.
[4] T. C. Chu, “Facility location selection using fuzzy TOPSIS under group decisions”, International Journal of Uncertainty, Fuzziness and Knowledge-Based Systems, vol. 10, pp. 687-701, December 2002.
[5] R.J. Kuo, S.C. Chi and S.S. Kao, “A decision support system for selecting convenience store location through integration of fuzzy AHP and artificial neural network”. Computers in Industry, vol. 47, no. 2, pp. 199-214, June 2001.
[6] M.F. Norese, “ELECTRE III as a support for participatory decision-making on the localization of waste-treatment plant”. Land Use Policy, vol. 23, no. 1, pp. 76-85, 2006.
[7] C.R. Wu, C.T. Lin and H.C. Chen, “Optimal selection of a location for Taiwanese hospitals to ensure a competitive advantage by using the analytic hierarchy process and sensitivity analysis”. Building and Environment, vol. 42, no. 3, pp. 1431-1444, December 2005.
[8] C.L. Yang, S.P. Chuang, R.H. Huang and C.C. Tai, “Location selection based on AHP/ANP approach”, Proceedings of the 2008 IEEE IEEM, pp. 1148-1153, December 2008.
[9] N.T. Çınar, “Kuruluş Yeri Seçiminde Bulanık TOPSIS Yöntemi ve Bankacılık Sektöründe Bir Uygulama”, KMÜ Sosyal ve Ekonomik Araştırmalar Dergisi, vol. 12, no. 18, pp. 37-45, June 2010.
[10] H. Erbıyık, S. Özcan and K. Karaboğa, “Retail store location selection problem with multiple analytical hierarchy process of decision making an application in Turkey”, 8th International Strategic Management Conference, Procedia - Social and Behavioral Sciences, vol. 58, pp. 1405-1414, 2012.
[11] İ, Onden, H. Tuzla and S. Cobb, “Evaluation of retail store location alternatives for investment decisions using the Delphi technique and geographic information systems, International Business: Research, Training and Practice, vol. 6, no. 2, pp. 64-76, 2010.
[12] M. Momeni, M. R. Fathi and M. Kashef, “A fuzzy VIKOR approach for plant location selection”, Journal of American Science, vol. 7, no. 9, pp. 766-771, 2011.
[13] S. Yavuz and M. Deveci, “Bulanık TOPSIS ve bulanık VIKOR yöntemleriyle alışveriş merkezi kuruluş yeri seçimi ve bir uygulama”, Ege Akademik Bakış, vol. 14, no. 3, pp. 463-479, July 2014.
[14] Ş. Erdoğmuş, M. Kapanoğlu and E. Koç, “Evaluating high-tech alternatives by using analytic network process with BOCR and multiactors”, Evaluation and Program Planning, vol. 28, pp. 391-399, 2005.
[15] E. Koç and H. A. Burhan, An Analytic Hierarchy Process (AHP) Approach to a Real World Supplier Selection Problem. A Case Study of Carglass Turkey. Global Business and Management Research: An International Journal, vol. 6, no. 1, pp. 1-14, 2014.
[16] T. L. Saaty, Decision Making with Dependence and Feedback, Pittsburg, USA: RWS Publications, 2001.,
[17] T. L. Saaty and L. G. Vargas, Decision Making with the Analytic Network Process, New York, USA: Springer, 2006.
[18] İ. Yüksel and M. Dağdeviren, “Using the analytic network process (ANP) in a SWOT analysis – A case study for a textile firm”, Information Sciences, vol. 177, pp. 3364-3382, January 2007.
[19] L. M. Meade, A Methodology for the Formulation of Agile Critical Business Processes, PhD Thesis, The University of Texas, 1997.
[20] A. Presley and L. M. Meade, “Strategic alignment and IT investment selection using the analytic network process” AMCIS 1999 Proceedings, pp. 411-413, 1999.
[21] P. L. Lombardi, I. M. Lami, M. Bottero and C. Grasso, “Application of the analytic network process and multi-modal framework to an urban upgrading case study”. International Conference on Whole Life Urban Sustainability and Its Assessment, Glasgow, June 2007.
[22] F. Y. Partovi, “An Analytic Model for Locating Facilities Strategically”, Omega, vol. 34, pp. 41-55, September 2004.
[23] T. Ustasüleyman and S. Perçin, “Analitik ağ süreci yaklaşımıyla kuruluş yeri seçimi”, Gazi Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, vol. 9, no. 3, pp. 37-55, 2007.
[24] S. Önüt, U. R. Tuzkaya and B. Kemer, “An analytic network process approach to the choice of hospital location”, Journal of Engineering and Natural Sciences, vol. 25, no. 4, pp. 367-379, 2008.
[25] G. Tuzkaya, S. Önüt, U. R. Tuzkaya and B. Gülsün, “An analytic network process approach for locating undesirable facilities: An example from Istanbul, Turkey”, Journal of Environmental Management, vol. 88, no. 4, pp. 970-983, June 2007.
[26] A. F. Guneri and C. S. Seker, “A fuzzy ANP approach to shipyard location selection”, Expert Systems with Applications, vol. 36, no. 4, pp. 7992, 7999, 2009.
[27] C. W. Hsu, L. T. Chen, H. H. Allen and Y. M. Chang, “Site selection for carbon dioxide geological store using analytic network process”, Separation and Purification Technology, vol. 94, pp. 146-153, 2012.
[28] J. W. Lee and S. H. Kim, “Using analytic network process and goal programming for independent information system project selection”, Computers & Operations Research, vol. 27, no. 4, pp. 367-382, December 1998.
[29] L. M. Meade and A. Presley, “R&D project selection using the analytic network process”, Transportation Engineering Management, vol. 49, no. 1, pp. 59-66, February, 2002.
[30] C. A. Grady, H. Xiaozheng and P. Srinivas, “Integrating social network analysis with analytic network process for international development project selection”, Expert Systems with Applications, vol. 42, no. 12, pp. 5128-5138, February 2015.
[31] Ş. Erdoğmuş, H. Aras and E. Koç, “Evaluation of alternative fuels for residential heating in Turkey using analytic network process (ANP) with group decision-making”, Renewable & Sustainable Energy Reviews, vol. 10, pp. 269-279, 2006.
[32] S. Pourebrahim, M. Hadipour, M. B. Mokhtar and M. I. H. Mohamed, “Analytic network process for criteria selection in sustainable coastal land use planning”, Ocean & Coastal Management, vol. 53, pp. 544-551, August 2010.
[33] M. Molinos-Senante, T. Gomez, R. Caballero, F. Hernandez-Sancho and R. Sala-Garrido, “Assessment of wastewater treatment alternatives for small communities: An analytic network process approach”, Science of the Total Environment, vol. 532, pp. 676-687, June 2015.
[34] N. Alptekin, “Analitik ağ süreci yaklaşımı ile Türkiye’de beyaz eşya sektörünün pazar payı tahmini”, Doğuş Üniversitesi Dergisi, vol. 11, no. 1, pp. 18-27, 2010.
[35] H. Hsu-Shih, S. Lee, C. Shun-Hsiang and C. Chiau-Ching, “A forecasting decision on the sales volume of printers in Taiwan: An exploitation of the analytic network process”, Computers and Mathematics with Applications, vol. 64, no. 6, pp. 1545-1556, 2012.
[36] H. R. Yazgan, S. Boran and K. Göztepe, “An ERP software selection process with using artificial neural network based on analytic network process approach”, Expert Systems with Applications, vol. 36, no. 5, pp. 9214-9222, 2009.
[37] S. Jharkharia and R. Shankar, “Selection of logistics service provider: An analytic network process (ANP) approach”, Omega, vol. 35, no. 3, pp. 274-289, 2007.
[38] J. Razmi, M. S. Sangari and M. Hashemi, “Designing a decision support system to evaluate and select suppliers using fuzzy analytic network process”, Computers & Industrial Engineering, vol. 57, no. 4, pp. 1282-1290, June 2009.
[39] G. Büyüközkan and Ç. Berkol, “Designing a sustainable supply chain using an integrated analytic network process and goal programming approach in quality function deployment”, Expert Systems with Applications, vol. 38, no. 11, pp. 13731-13748, 2011.
[40] Y. Tjader, J. H. May, J. Shang, L. G. Vargas and N. Gao, “Firm-level outsourcing decision making: A balanced scorecard-based analytic network process model”, International Journal of Production Economics, vol. 147, pp. 614-623, 2014.
[41] W. Y. Wu, H. A. Shih and H. Chun-Chan, “The analytic network process for partner selection criteria in strategic alliances”, Expert Systems with Applications, vol. 36, no. 3, pp. 4646-4653, 2009.
[42] F. C. Hor, L. C. Huang, H. S. Shih, Y. H. Lee and E. S. Lee, “Establishing talent management for company’s succession planning through analytic network process: Application to a MNC semiconductor company in Taiwan”, Computers and Mathematics with Applications, vol. 60, pp. 528-540, May 2010.
[43] H. T. Lin, “Personnel selection using analytic network process and fuzzy data envelopment analysis approaches”, Computers & Industrial Engineering, vol. 59, no. 4, pp. 937-944, September 2010.
[44] K. L. Chang, S. K. Liao, T. W. Tseng and C. Y. Liao, “An ANP based TOPSIS Approach for Taiwanese service apartment location selection”, Asia Pacific Management Review, vol. 20, pp. 49-55, March 2015.
[45] S. Crowe and J. Lucas-Vergona, “What should be done about the illegal immigration from Mexico to United States?”, Mathematical and Computer Modelling, vol. 46, pp. 1115-1129, March 2007