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Analytic Network Process Approach to Location Selection Problem for a New Shopping Center

2. IntroductionMultiple-Criteria Decision Making: Analytic Network Process (ANP)Case StudyConclusion. Outline. 3. What ? The aim of this work is to find out the best location for a new shopping center among a set of alternatives.Why ?Locating a shopping center is a problem under various c

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Analytic Network Process Approach to Location Selection Problem for a New Shopping Center

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    1. 1 Analytic Network Process Approach to Location Selection Problem for a New Shopping Center

    2. 2 Introduction Multiple-Criteria Decision Making: Analytic Network Process (ANP) Case Study Conclusion

    3. 3 What ? The aim of this work is to find out the best location for a new shopping center among a set of alternatives. Why ? Locating a shopping center is a problem under various circumstances and the problem is multiple criteria decision making problem in the presence of evaluation criteria and a set of alternatives. How ? Analytic Network Process (ANP) is used in this work because it is one of the most commnly used method in literature nowadays.

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    5. 5 Many decision problems cannot be building as hierarchical Dependencies (inner/outer), influences between and within clusters (criteria, alternatives) Very useful to solve this kind of problems. Provides a general framework Without making assumptions Independence of higher level elements from lower level elements Independence of the elements within a level Without the need to specify levels as in a hierarchy

    6. 6 Non-Linear Network

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    9. 9 Population Expected change in the population Population density of shopping centers around Population income level Population growth rate Consuming habits of the population Land price Municipal permit Infrastructure investment cost Taxation Return on investment Service opportunities Security, cleaning and employment expenses Proximity to retailers Unproblematic providing of the acceptance of goods

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    11. 11 Central location Proximity to residential area Parking convenience Proximity to public transportation Traffic density The number of shopping malls around The number of stores and brand composition in shopping malls around Visibility

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    13. 13 Population Characteristics (PC) Population (PC1) Population Income Level (PC2) Population Growth Rate (PC3)

    14. 14 Super Decisions Software was developed to solve MCDM problems using the ANP method by Thomas L. Saaty. It is popular now in the literature and freeware for all kind of use.

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    23. 23 In this study, we used ANP approach to solve a MCDM problem, shopping center location selection problem. The ANP method is a very powerful tool to model and solve these kinds of the problems. It is needed if all attributes and alternatives involved are connected in a network system that accepts various dependencies. Several decision problems cannot be hierarchically structured because they involve the interactions and dependencies in higher or lower level elements. A case study for the European Side of Istanbul is presented to show the applicability of the suggested model and it can be used an entrepreneur to locate the best location of shopping center among a possible set of the alternatives.

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