In this paper, we examine the issue of strategic industrial location selection in uncertain decision making environments for implanting new industrial corporation. In fact, the industrial location issue is typically considered as a crucial factor in business research field which is related to many calculations about natural resources, distributors, suppliers, customers, and most other things. Based on the integration of environmental, economic and social decisive elements of sustainable development, this paper presents a hybrid decision making model combining fuzzy multi-criteria analysis with analytical capabilities that OLAP systems can provide for successful and optimal industrial location selection. The proposed model mainly consists in three stages. In the first stage, a decision-making committee has been established to identify the evaluation criteria impacting the location selection process. In the second stage, we develop fuzzy AHP software based on the extent analysis method to assign the importance weights to the selected criteria, which allows us to model the linguistic vagueness, ambiguity, and incomplete knowledge. In the last stage, OLAP analysis integrated with multi-criteria analysis employs these weighted criteria as inputs to evaluate, rank and select the strategic industrial location for implanting new business corporation in the region of Casablanca, Morocco. Finally, a sensitivity analysis is performed to evaluate the impact of criteria weights and the preferences given by decision makers on the final rankings of strategic industrial locations.
In this paper, we examine the issue of strategic industrial location selection in uncertain decision making environments for implanting new industrial corporation. In fact, the industrial location issue is typically considered as a crucial factor in business research field which is related to many calculations about natural resources, distributors, suppliers, customers, and most other things. Based on the integration of environmental, economic and social decisive elements of sustainable development, this paper presents a hybrid decision making model combining fuzzy multi-criteria analysis with analytical capabilities that OLAP systems can provide for successful and optimal industrial location selection. The proposed model mainly consists in three stages. In the first stage, a decision-making committee has been established to identify the evaluation criteria impacting the location selection process. In the second stage, we develop fuzzy AHP software based on the extent analysis method to assign the importance weights to the selected criteria, which allows us to model the linguistic vagueness, ambiguity, and incomplete knowledge. In the last stage, OLAP analysis integrated with multi-criteria analysis employs these weighted criteria as inputs to evaluate, rank and select the strategic industrial location for implanting new business corporation in the region of Casablanca, Morocco. Finally, a sensitivity analysis is performed to evaluate the impact of criteria weights and the preferences given by decision makers on the final rankings of strategic industrial locations.
Strategic industrial location decisions have garnered considerable attention from
the academic and business communities. Increasingly, it has been proved to be vital (Kapoor et al.
2008) especially for industrial and urban projects,
which can accelerate the rate of economic growth, increase economic efficiency, minimize unnecessary
cost, maximize the use of resources, improve investment climate, and promote the development of the
regional economy (Yong 2005; Rao et al 2015). The science of “location selection” is truly
multidisciplinary and representing a variety of scientific fields, ranging from business to
operations research to computer science (Church and Murray 2008). In fact, the success or failure of most industrial businesses often depends on
the formal business plan of these businesses, and also on the owner’s ability to choose his location
within or among several industrial areas. In this context, a priori selection of a suitable
industrial location is a complex process which involves a number of different potential criteria,
such as cost of investment, availability of acquisition material, human resources, etc., that must
be considered in selecting a strategic industrial location (Yong 2005).Following these considerations, several contributions have been dedicated to the
location selection problem using different multi-criteria decision making methods such as fuzzy
Delphi, fuzzy AHP, ANP (Analytic Network Process), TOPSIS (Technique for Order Preference by
Similarity to Ideal Solution) and PROMETHEE (Preference Ranking Organization METHod for Enrichment
Evaluations). For instance, Chou et al (2008) presented
a fuzzy multi-criteria decision making model based on fuzzy AHP for international tourist hotel
location selection. Guneri et al. (Guneri et al. 2009)
applied fuzzy ANP method to identify and select a suitable location for a shipyard. Also, Hsu
(2010) employed ANP methodology to select the
appropriate location for an international business office center in China. Önüt et al. (2010) presented an integrated fuzzy multi-criteria decision making
approach based on fuzzy AHP and fuzzy TOPSIS methods for the selection of a suitable shopping center
location in Istanbul, Turkey. Li et al. (2011) used the
axiomatic fuzzy set clustering approach and TOPSIS technique to select a logistic center location.
Bottero and Ferretti (2011) ranked sites for the
location of a waste incinerator plant in the Province of Torino in Italy using ANP method. Athawale
et al. (2012) applied PROMETHEE II to solve real time
facility location selection problems. Choudhary and Shankar (2012) proposed a framework based on an STEEP-fuzzy AHP-TOPSIS for the evaluation and
selection of thermal power plant location taking India as a case study. Furfaro et al (2012) presented the development of a model of an evolutionary fuzzy
cognitive map model to select a landing site for scientific discoveries forced by the soft landing
requirement in an area with safe lands. Ishizaka et al. (2013) used the weighted sum method, TOPSIS, and PROMETHEE for casinos location
selection in the Greater London region. Kabir and Sumi (2014) used fuzzy AHP and PROMETHEE for power substation location selection, taking
Bangladesh as a case study. Yunna and Geng (2014)
provided a multi-criteria decision making framework based on AHP for the selection of solar–wind
hybrid power station location in China. Moreover, Chang et al. (2015) have combined the fuzzy Delphi method, ANP, and TOPSIS to effectively make
better decisions for optimal location selection in Taiwanese service apartments. Rao et al.
(2015) presents a fuzzy multi-attribute group decision
making technique based on a linguistic 2-tuple for the location selection of a City Logistics
Centers from a sustainability perspective.On the other hand, Geographic Information System (GIS) is also applied in many
location selections due to its spatial capabilities to facilitate the geographical localization
selection. Consequently, several GIS applications have been conducted in order to select the optimal
location such as the contribution of Demesouka et al. (2013) combining GIS with AHP and TOPSIS to evaluate and select the appropriate
location for landfill waste in the North of Greece. Rikalovic et al. (2014) propose GIS based multi-criteria analysis for industrial site selection in the
region of Vojvodina, Serbia. Further, Latinopoulos and Kechagia (2015) proposed a GIS-based multi-criteria evaluation for wind farm site selection in
Greece. Yang et al. (2015) present a new approach based
on a combination of a set of machine learning algorithms and web GIS to evaluate potential sites for
proposed hotel properties.As a result, many methodologies, approaches, frameworks and applications have been
proposed for the location selection problem (Önüt et al. 2010; Li et al. 2011; Choudhary and
Shankar 2012; Demesouka et al. 2013; Kabir and Sumi 2014; Chang et al. 2015…). Most of them
have focused firstly on classical and traditional criteria, such as reducing economic costs and
maximizing customer service levels, instead of focusing on criteria evolving over time like those of
sustainable development incorporating economic, social and environmental factors and on
multidimensional data. In this context, to the best of our knowledge, very few of these
contributions have emphasized their attention on the strategic industrial location selection,
especially for its application in the Moroccan regions by using an integrated approach combining
fuzzy multi-criteria analysis and OLAP analysis. In addition, it is difficult to clearly express the
significance and character of criteria using traditional methods. Hence, combining the concept of
fuzzy set theory and natural language with AHP method to evaluate the location selection criteria in
a fuzzy environment is more convenient, allowing decision makers to adequately and freely express
their ideas. These reasons have motivated us to propose an improved hybrid
multi-criteria/multidimensional approach to select the strategic industrial location for the
implantation of new business corporation in the region of Casablanca. The proposed approach has
three essential stages. In the first stage, a decision making committee is formed in order to
identify and select criteria for the alternative assessment phase. In the second stage, the
importance weight is assigned to the selected criteria using integrated fuzzy AHP software. Lastly,
OLAP analysis combined with multi-criteria analysis employs these weighted criteria as inputs to
evaluate and select the strategic industrial location for the implantation of new business
corporation in the region of Casablanca. Finally, we conduct a sensitivity analysis to evaluate the
impact of criteria weights and the preferences given by decision makers on the final rankings of
strategic industrial location.This paper is organized as follows. In “Methodology”, we discuss our research methodology and develop our proposed hybrid
approach. “Results and discussion” presents an empirical
study illustrating the effectiveness and performance of our integrated approach. Finally,
“Conclusion” contains some concluding remarks.
Methodology
During this section, we discuss the various steps and tools constructing our
proposed methodology, starting from evaluation of the selected criteria, assessment of potential
alternatives and finally, presentation of the final results.
Fuzzy AHP
The Analytic hierarchy Process (AHP), initially introduced by Saaty (1980), has becomes a powerful and flexible methodology in solving
complex decision problems. In fact, the AHP process consists in representing a decision problem by a
hierarchical structure reflecting the interactions between the various elements of the problem, then
using pair-wise comparison judgments to identify and estimate the relative importance of criteria
and alternatives. However, the AHP method has some shortcomings (Yang and Chen, 2004) due to its ineffectiveness when applied to an ambiguous
problem with a high uncertainty. Therefore, several researchers, including those in “Background”, introduce fuzzy logic into the pairwise comparison of the
AHP to compensate and deal with this type of fuzzy decision problem.One of the latest FAHP methodologies is based on Chang’s extent analysis. It is
relatively easier compared to many other approaches of FAHP. Hence, in this paper we prefer to
utilize Chang (1996) extent analysis method to evaluate
the importance weight of each selected criteria. The theoretical fundamentals of Chang’s extent
analysis on FAHP were defined as follows (Gumus 2009):Let be an object set, and as a goal set. According to the principles of Chang’s extent analysis, each object
is considered and extent analysis for each of the goal, gi is performed
respectively. It means that m extent analysis values for each
object can be obtained using the following signs:where are triangular fuzzy numbers. The followed steps of Chang’s extent analysis can be
examined as explained below:Step 1 The value of fuzzy synthetic extent with respect to the
ith object is defined as :The fuzzy addition operation of m extent analysis values must be performed for
particular matrix to obtain such that:Then, we perform the fuzzy edition operation of m extent analysis values for a
particular matrix to obtain , such that:And the inverse of the vector in Eq. (4) is
computed such thatStep 2 The degree of possibility of is defined asand it can be represented as follows:where d is the ordinate of the highest intersection point between and .To be able to compare M1 and M2 we need both the values of
V(M1 ≥ M2) and V(M2 ≥ M1).Step 3 The degree possibility for a convex fuzzy number to be
greater than k convex fuzzy numbers can be defined byAssume that,For . Then the weight vector is given bywhere are n elements.Step 4 Via normalization, the normalized weight vectors
arewhere W is a non fuzzy number.
OLAP system
Recently, decision support systems have been largely improved thanks to a large
number of scientific researches. OLAP tools, being a decision making technology, appear as a
complete system that provides helpful and necessary services for a rational and efficient treatment
of intelligence data. In this kind of models, data are well organized multi-dimensionally so that
the decision makers could analyze them interactively and iteratively at a detailed and/or aggregated
level. The multidimensional structure (Kimball 1996)
can be represented by a cube. A cube is composed of elements called cells. The cells contain the
values of a fact, usually called measures. The cube axes correspond to the dimensions and they are
graduated by members. In this multidimensional structure, the dimensions are hierarchies and
therefore comprise a set of levels related by classification relationships (Fig. 1).
Fig. 1
Data warehouse multidimensional modeling
Data warehouse multidimensional modelingThe advantages of OLAP system are very numerous, however, this system has some
shortcomings especially when we deal with more complex situations where several criteria
(quantitative and/or qualitative) should be taken into account, which will certainly lead to bad
consequences such as failure in achieving decision quality improvement, occasionally long analysis
cycle times, and low decision makers’ satisfaction. In this context, combining multi-criteria
decision making analysis (MCDA) with fuzzy set theory to enhance the analytical capabilities within
OLAP system can offer an effective approach to resolve complex decision making problems. Hence, it
is useful to envisage an optimized data model for OLAP cubes, taking into consideration various
criteria on which we can apply new methods of MCDA as explained in Fig. 2.
Fig. 2
Abstract representation cycle of the OLAP-MCDA cube
Abstract representation cycle of the OLAP-MCDA cubeThe conceptual model used for this integrated approach is based on a star
dimensional structure, which provides a fact table (OLAP-MCDA cube) as evaluation table that
contains observable, measurable and digital data (Kimball and Ross 2002) circled by dimensions including the specific needs of decision makers as
mentioned below:Action dimension represents all actions, alternatives or
solutions to be evaluated.Criteria dimension includes criteria selected by the decision
makers when defining objectives. They point the judgment on which an action is evaluated and
measured.Time dimension checks the impact of each criterion with respect
to each action for a definite period of time.The proposed conceptual model used to construct our new OLAP cube is shown in
Fig. 3.
Fig. 3
Multidimensional star schema
Multidimensional star schemaThe weighted sum function will be used as a multi-criteria analysis method due to
its simplicity to be easily integrated within the XML file containing the OLAP cube. Hence, the
aggregation of the criteria dimension values will be achieved by introducing different weighting in
the evaluation process using this formula:where u(ai) is the utility evaluated of ith alternative,
vj is the weight of jth criterion, rij is the utility
evaluated of ith alternative for jth criterion
The followed methodology
The proposed hybrid multi-criteria/multidimensional model for the selection of
strategic industrial location has three major processes as explained in Fig. 4:
Fig. 4
Proposed approach
Proposed approachProcess I During this process, a decision making committee is
formed of two experts, one project manager and one real estate consultant in order to determine the
most influential criteria required to evaluate the proposed strategic industrial location. The
committee begins by a detailed description of the problem and generates ideas about the needed
criteria to be implemented when making the decision. It is ended when a consensus is reached for the
selected criteria.Process II After a consensus is reached for the identified
criteria, the committee occurs at the fuzzy AHP process to construct the pairwise comparison
matrices, and converts the linguistic appreciations of decision makers assigned to each criterion
using Table 1 to easily derive corresponding values of fuzzy
numbers, and finally calculates the importance weights of each criterion.
Table 1
Fuzzy comparison measures (Gumus 2009)
Linguistic terms
Triangular fuzzy numbers
Very good (VG)
(7, 9, 9)
Good (Gd)
(5, 7, 9)
Preferable (P)
(3, 5, 7)
Weak advantage (WA)
(1, 3, 5)
Equal (EQ)
(1, 1, 1)
Less WA
(1/5, 1/3, 1)
Less P
(1/7, 1/5, 1/3)
Less G
(1/9, 1/7, 1/5)
Less VG
(1/9, 1/9, 1/7)
Fuzzy comparison measures (Gumus 2009)Process III The main objective of this process is to evaluate and
select the strategic industrial location using OLAP optimized data model. This new model combines
the analytical capabilities of OLAP system with the weighted sum as a multi-criteria analysis method
characterized by its mathematical accessibility over the other MCDA methods. The relative
importance/weights of the evaluation criteria obtained from the fuzzy AHP process are taken into
account as inputs in this process which will enable us to identify the candidate alternative as a
final result.
Computational study
In this section, we show the numerical experiments for the strategic industrial
location selection using our hybrid multi-criteria/multidimensional approach.
Problem description
According to the Moroccan Department of Statistics, Casablanca, as the largest and
the most populated agglomeration in the Maghreb, accounts for more than 50 % of the total capital
investment, and provides over 48 % of the industrial employment for many years. Also, Casablanca has
more than six large industrial locations, of which the decision making committee has selected the
four most active locations (L1, L2, L3 and L4) with respect to their competitive importance
(Fig. 5).
Fig. 5
Alternative large industrial locations in Casablanca
Alternative large industrial locations in CasablancaIn this context, choosing the appropriate industrial zone to install an industrial
company in the region of Casablanca involves making a full implanting study to achieve the right
choice, and thus find the right location, that is often strategic for the development of the
company. This corporation of central industrial equipment superstructure (automobile industry)
composed of a production chain that produces 10 units per day, and aims to target the Moroccan and
African markets.As illustrated in Fig. 6, the hierarchical
structure of this decision-making problem consists of four levels: The objective is shown in the
highest level. A set of criteria to take into consideration when evaluating large industrial
locations is identified by a decision making committee, exploring available literature. Thus, the
committee reached to select three sustainability criteria evolving over time which are
Geo-environmental, Economic and Social in the second level, while six sub-criteria (limited to the
most influencing sub-criteria: C1, …, C6) are classified on the third level . The last level of
hierarchy includes four large industrial locations (L1, …, L4).
Fig. 6
Hierarchical structure used for strategic industrial locations selection
Hierarchical structure used for strategic industrial locations selectionThe selected criteria arising from a sustainability perspective to evaluate and
select the potential industrial location (Choudhary and Shankar 2012; Mohammadi et al. 2014; Chen et al.
2014; Rao et al. 2015) are as follows:
Geo-environmental criteria (GE)
Situation and proximity of green areas(C1) The implantation site should be at the center or can be
located on the periphery or outside a city or urban area. The proximity of green areas, a low
business tax and funding programs for business creators are all factors facilitating the start-up
companies.Land (C2) The size and quality of future commercial premises are
influenced by the price of land, the collection rate of business tax, the prices of energy and the
legal provisions on noise pollution, and possibility to expand the business.
Economic criteria (EC)
Cost (C3) This criterion takes into consideration the total cost
of the acquisition, rents and charges (eg. for equipment, connection, administrative costs) and
waste disposal costs…Competition and provision (C4) The role of local competition in
the commercial project, and ease and flexibility of the supply of raw materials, commodities,
consumer articles and energy are to be taken into account during the evaluation process.
Social criteria (SC)
Close proximity to the customer base and traffic lanes (C5) For
this criterion, we discuss the access flexibility that customers, suppliers and employees can
smoothly have, and the proximity of an airport, a train station or highway in regard to the
corporation.Manpower and information exchange (C6) This implies the
attractiveness and motivation of skilled staff of the company, as well as the cultural offer and the
attractiveness of the location in relation to the free time. The implication of private and public
consulting institutions regarding the exchange of information is also to be mentioned. In addition
to the presence of higher education institutions with which it is possible to exchange information
and develop other forms of cooperation.
Results and discussion
In the following stage, the weights of criteria and sub-criteria are calculated
using fuzzy-AHP, and these calculated weight values are used as input in the OLAP-MCDA process.
Then, after OLAP-MCDA calculations, evaluation of the alternatives (strategic industrial location)
and selection of the most suitable one is performed. At the conclusion, our results are checked and
analyzed in detail using sensitivity analysis.
Fuzzy AHP process
During this process, we construct the pairwise comparisons of the main criteria and
their sub-criteria using Table 1 for linguistic terms and
TFN (Triangular Fuzzy Numbers) scale. Due to space limitation and the similarity of the other
calculations for each comparison matrix, we only provide the evaluation matrices of three members of
decision making committee (DM1, DM2 and DM3) as
mentioned in Tables 2 and 3.
Table 2
Comparison matrix for the main criteria using linguistic variables
Objective
EC
GE
SC
DM1
DM2
DM3
DM1
DM2
DM3
DM1
DM2
DM3
EC
EQ
EQ
EQ
P
WA
WA
WA
P
EQ
GE
L.WA
L.WA
L.P
EQ
EQ
EQ
L.P
EQ
L.WA
SC
EQ
L.P
L.WA
WA
EQ
P
EQ
EQ
EQ
Table 3
The evaluation matrix for the main criteria using TFN scale
Objective
EC
GE
SC
EC
(1, 1, 1)
(1, 3.667, 7)
(1, 3, 7)
GE
(0.143, 0.273, 1)
(1, 1, 1)
(0.143, 0.511, 1)
SC
(0.143, 0.333, 1)
(1, 1.957, 7)
(1, 1, 1)
Comparison matrix for the main criteria using linguistic variablesThe evaluation matrix for the main criteria using TFN scaleTo simplify the calculation steps, we provide a spreadsheet of Microsoft Excel (see
Fig. 15 in Appendix 1 and Additional file 1 for group decision matrix), and a Java application to manage
individual appreciations of policy makers (see Fig. 16 in
Appendix 2 treating the individual appreciation of DM2). We present in the following, an example of
calculations of the weights for main criteria using Chang’s extent analysis approach.
Fig. 15
The computational steps of fuzzy AHP process
Fig. 16
The proposed software prototype to simplify the process of calculating the criteria
weight
The values of fuzzy synthetic extent (from Table 3) are evaluated as follows:Then these vectors will be used to calculate V values as shown in
Table 4.
Table 4
V values result
V(Scol ≥ Srow)
Criteria
EC
GE
SC
Column ≥ row
–
0.435
0.790
Column ≥ row
1
–
1
Column ≥ row
1
0.766
–
V values resultThus, the weight vector from Table 4 is
calculated as W′= (1, 0.435, 0.790), and the normalized weight vector is obtained as
Wt = (0.450, 0.196, 0.355)TFollowing the same systematic approach for the other evaluations, we get the
priority weights correspondingly as explained below:For sub-criteria (C1, C2): WEC = (0.697,
0.307)TFor sub-criteria (C3, C4): WGE = (0.179,
0.801)TFor sub-criteria (C5, C6): WSC = (0.132,
0.870)TAs a summary, we provide in Table 5 the final
importance weight and final ranking of all evaluation criteria.
Table 5
Final criteria weight
Criterion/sub criterion
Local weight
Global weight
Rank
EC
0.450
C1
0.697
0.314
1
C2
0.307
0.138
4
GE
0.196
C3
0.179
0.035
6
C4
0.801
0.157
3
SC
0.355
C5
0.132
0.047
5
C6
0.870
0.309
2
Final criteria weight
OLAP-MCDA analysis process: evaluation and ranking of alternatives
As explained in the previous approach, the importance weight assigned to the
selected criteria will be used as input in the OLAP-MCDA process to evaluate and select the most
appropriate alternative.The objective is to select the suitable large industrial zone in Casablanca for
implanting new industrial corporation taking into account all selected criteria proposed above. The
value of each criterion with respect to each location is controlled during the period
2000–2014.The appreciations of decision makers for the evaluation of alternatives with
respect to all specified criteria will be performed using linguistic scale for evaluation
(Fig. 7; Table 6).
Fig. 7
Linguistic scale for evaluation
Table 6
Transformation for fuzzy membership functions
Linguistic
Membership function
Very low (VL)
(0.00, 0.10, 0.25)
Low (L)
(0.15, 0.30, 0.45)
Medium (M)
(0.35, 0.50, 0.65)
High (H)
(0.55, 0.70, 0.85)
Very High (VH)
(0.75, 0.90, 1.00)
Linguistic scale for evaluationTransformation for fuzzy membership functionsWe provide in Fig. 8, before any
calculations, the analysis and modelling of the problem using a multidimensional star schema.
Fig. 8
Star schema of OLAP-MCDA cube
Star schema of OLAP-MCDA cubeAt this stage, we take into consideration the appreciations of decision makers for
each criterion over a definite period of time (Table 7), and
proceed to the evaluation of the four potential locations.
Table 7
The decision makers’ judgments over a defined period of time
Criteria
Time
L1
L2
L3
L4
Weight
C1
2000
L
M
L
VL
0.314
2007
VL
H
L
H
2014
H
M
H
M
C2
2000
VL
L
M
L
0.138
2007
M
M
H
L
2014
M
M
H
M
C3
2000
L
L
M
VL
0.035
2007
M
M
M
L
2014
M
VH
H
M
C4
2000
VL
M
L
L
0.157
2007
L
M
M
L
2014
L
H
M
M
C5
2000
M
L
VL
L
0.047
2007
M
L
L
M
2014
H
M
M
VH
C6
2000
L
L
H
M
0.309
2007
M
L
H
H
2014
M
M
VH
H
The decision makers’ judgments over a defined period of timeIn the following steps, we use an open source OLAP server called Mondrian server
(Pentaho community 2015), to bring multidimensional
analysis and perform typical OLAP navigations like roll up, drill down, slice, dice, and pivot. To
simplify this navigation, we used a JPivot interface, which is a JSP (JavaServer Pages) custom tag
library. This will help us use MDX (Multidimensional Expressions) queries and XML language through
this interface to screen very fast for a particular subset of the data from the XML file containing
our OLAP-MCDA cube. The hybrid cube contains a measure called ‘evaluation’, and ‘weighted sum’,
‘multi-criteria aggregation’ as calculated members.The representation of our hybrid cube data is illustrated in Fig. 9 using MDX query:
Fig. 9
Hybrid cube representation using OLAP JPivot client of Mondrian server
Hybrid cube representation using OLAP JPivot client of Mondrian serverBy using MDX query, we can also illustrate the importance and impact of the
selected criteria on each industrial location as mentioned in Fig. 10.
Fig. 10
Criteria evaluation for each itinerary
Criteria evaluation for each itineraryAlso, based on the decision maker’s judgments, we can verify the effect of the
weighting on the importance of each criterion (Fig. 11)
using Eq. (11).
Fig. 11
Effect and result of weighted sum on each criterion
Effect and result of weighted sum on each criterionAt this stage, we create and add a new calculated member “Multi-criteria
Aggregation” to the criteria dimension to allow aggregation of the evaluation criteria according to
the method of weighted sum, as shown in Fig. 12.
Fig. 12
Aggregated evaluation per year for each industrial location
Aggregated evaluation per year for each industrial locationBy exploiting the analytical mechanisms of OLAP server to move up in the hierarchy
of the cube, the representation of the results are performed after the final ranking of
multi-criteria aggregation for all locations as graphically shown in Fig. 13.
Fig. 13
Final result
Final result
Sensitivity analysis
As illustrated in Fig. 13, the final
evaluation of potential industrial location is provided by using the visualization mechanisms of the
OLAP Mondrian server. The most appropriate industrial location is the one with the highest score as
mentioned graphically in Fig. 13, which revealed that
industrial location III (L3) is the preferred location with a score of 1.683, followed by L2
(1.487), L4 (1.436) and finally L1 (1.024).With the aim of assessing the impact of decision makers’ risks to the final
location ranking supplied previously, a sensitivity analysis which is presented in
Table 8 is carried out. The main objective as suggested in
many contributions such as (Mousavi et al. 2013; Zhu et
al. 2015; Mosadeghi et al. 2015), is to check for the possible changes that may influence the
final evaluation results listed in Fig. 13. Depending on
this sensitivity analysis, exchanging each criterion’s weight with another and keeping practically
the other weights the same, is performed gradually in fifteen combinations on which the original
result is described as the main combination (see Additional file 2 for more detail). Also, the influence resulting from the performance of each
combination on the final classification is examined, and the computational results are summarized in
Table 8. Thus, the sensitivity results, as visualized in
Fig. 14, show that the ‘L3’ remains the best location
choice in nearly all combinations, except combinations 12, 14 and 15 on which the criterion C6 is
exchanged respectively with C3, C4 and C5, more precisely, when the weight of C6 criterion is
reduced to less than 30 %. L2 is classified as the second best industrial location in nine
combinations by excluding combinations where C1 has lost more than 50 % of its weight (combination 1
and 4), and also when C2 and C4 criteria have reached the weight of 0.047. Similarly, L4 is ranked
as the third best location in eleven combinations followed by L1 as the last choice in almost all
combinations.
Table 8
Sensitivity analysis
Combinations
Criteria weights
Alternative rankings
C1
C2
C3
C4
C5
C6
L1
L2
L3
L4
Main
0.314
0.138
0.035
0.157
0.047
0.309
4
2
1
3
1
0.138
0.314
0.035
0.157
0.047
0.309
4
3
1
2
2
0.035
0.138
0.314
0.157
0.047
0.309
4
2
1
3
3
0.157
0.138
0.035
0.314
0.047
0.309
4
2
1
3
4
0.047
0.138
0.035
0.157
0.314
0.309
3
4
1
2
5
0.309
0.138
0.035
0.157
0.047
0.314
4
2
1
3
6
0.314
0.035
0.138
0.157
0.047
0.309
4
2
1
3
7
0.314
0.157
0.035
0.138
0.047
0.309
4
2
1
3
8
0.314
0.047
0.035
0.157
0.138
0.309
4
3
1
2
9
0.314
0.309
0.035
0.157
0.047
0.138
4
2
1
3
10
0.314
0.138
0.157
0.035
0.047
0.309
4
2
1
3
11
0.314
0.138
0.047
0.157
0.035
0.309
4
2
1
3
12
0.314
0.138
0.309
0.157
0.047
0.035
4
1
2
3
13
0.314
0.138
0.035
0.047
0.157
0.309
4
3
1
2
14
0.314
0.138
0.035
0.309
0.047
0.157
4
1
2
3
15
0.314
0.138
0.035
0.157
0.309
0.047
4
1
3
2
Equal weights
0.167
0.167
0.167
0.167
0.167
0.167
4
3
2
1
Fig. 14
Final results of sensitivity analysis (multi-criteria aggregation scores)
Sensitivity analysisFinal results of sensitivity analysis (multi-criteria aggregation scores)The sensitivity analysis results demonstrate that the ranking of the strategic
industrial location has changed considerably on the equally weighted criteria, which explains that
weight of criteria found consistently form an important step in our proposed hybrid model. As a
result, the sensitivity analysis carried out indicates that the weights affect the ranking of
alternatives, which will enable the decision committee to enhance its decision making process by
fitting weighting and scoring, and performing sensitivity analysis.
Conclusion
The purpose of this paper is to present an improved hybrid
multi-criteria/multidimensional model based on fuzzy multi-criteria analysis and OLAP analysis for
strategic industrial location selection in the region of Casablanca. The location selection is
achieved by integrating the three dimensions of sustainability, namely, environmental, economic, and
social. To solve the problem of selection criteria interdependency, a decision making committee is
met to identify the evaluation criteria as the first stage. We only retain six important criteria to
structure the hierarchy for selecting the optimal industrial location. We propose that forthcoming
research studies integrate more criteria in order to make more precise estimates. In the second
stage, fuzzy AHP is used to assign the importance weights to each criterion. These calculated
weights, in the last stage, are employed in the OLAP analysis process as inputs to evaluate and
select the strategic industrial location for implanting new business corporation in the region of
Casablanca.The application of our integrated methodology allows the policy makers of a company
not only to determine the significant criteria, but also to compare, evaluate and select the
potential alternatives appropriately, which can make better decisions in selecting the optimal
industrial locations for implanting new business corporation. In this context, a sensitivity
analysis is performed for the case study in order to better evaluate the risk of decision makers’
perception. The provided results are more objective and the imprecision is addressed and quantified
properly.Besides, different multi-criteria techniques such as PROMETHEE, TOPSIS and VIKOR
can be employed in the location selection problem, as the contributions of (Taylana et al.
2014; Beikkhakhian et al. 2015; Chen 2015), and comparison of the
results can be presented. The main difference between these techniques, implemented in many studies,
and our hybrid analytical model consist at the ability to control the temporal evolution (time
dimension’s role) of a given problem by taking advantage of the analytical and technical
flexibilities that OLAP systems can provide.