Abstract

Facility location selection is a multi-criteria decision problem and has a strategic importance for many companies. The aim of this study is to propose a fuzzy approach for facility location selection. This paper is based on a fuzzy extension of the technique for order preference by similarity to ideal solution (TOPSIS) method. In this method, the ratings of various alternatives versus various subjective criteria and the weights of all criteria are assessed in linguistic variables represented by fuzzy numbers. Fuzzy numbers try to resolve the ambiguity of concepts that are associated with human being’s judgments. To determine the order of the alternatives, closeness coefficient is defined by calculating the distances to the fuzzy positive ideal solution (FPIS) and fuzzy negative ideal solution (FNIS). By using fuzzy TOPSIS, uncertainty and vagueness from subjective perception and the experiences of decision maker can be effectively represented and reached to a more effective decision.

Key words: Fuzzy logic, multi-criteria decision making, fuzzy technique for order preference by similarity to ideal solution (TOPSIS), facility location selection.