Compatibility and correlation of multi-attribute decision making: a case of industrial relocation

Industrial relocation (IR) is a business strategy consisting of moving operations locations. The purpose of this paper is to present how to assess, with multi-attribute decision-making (MADM), alternatives for IR. With MADM, IR strategies can be assessed not only based on a single attribute, as cost...

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Bibliographic Details
Published in:Annals of operations research 2023-07, Vol.326 (2), p.831-852
Main Authors: Martino Neto, Jose, Salomon, Valerio Antonio Pamplona, Ortiz-Barrios, Miguel Angel, Petrillo, Antonella
Format: Article
Language:English
Subjects:
Analysis
Analytic hierarchy process
Analytical hierarchy process
Business and Management
Business relocation
Combinatorics
Compatibility
Correlation coefficients
Costs
Decision making
Hierarchies
Literature reviews
Monte Carlo simulation
Multiple criteria decision making
Operations research
Operations Research/Decision Theory
Original Research
Regression analysis
Relocation
Theory of Computation
Utility theory
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Summary:Industrial relocation (IR) is a business strategy consisting of moving operations locations. The purpose of this paper is to present how to assess, with multi-attribute decision-making (MADM), alternatives for IR. With MADM, IR strategies can be assessed not only based on a single attribute, as costs, or profits. This paper presents the application of MADM in a real case of IR. Four leading methods of MADM were applied: analytic hierarchy process (AHP), multi-attribute utility theory (MAUT), multi-attribute value theory (MAVT), and technique of order preference by similarity to ideal solution (TOPSIS). Results of AHP, MAUT, MAVT, and TOPSIS were quite similar, indicating the decision for the company not to relocate. A joint comparison of results with compatibility indices and correlation coefficients is the major novelty presented by this paper to the field of Operations Research, known as MADM.
ISSN:0254-5330
1572-9338
DOI:10.1007/s10479-022-04603-9