At present, the condition of Rajshahi silk business is not as profitable as before. The isolated and limited number of showrooms is largely responsible for this. So, it is important to expand the showroom in the right place. In this case study, three methods of MCDM are used for the location selection of silk showroom in Rajshahi. The weight has been calculated by Entropy. The rank of the considered locations has been determined by PROMOTHEE and VIKOR. Finally, the decision has been made after a comparative discussion of the rank obtained from these two methods. Those who will have decision-making problems in the future, can decide by applying other methods of MCDM. At the same time, they are being encouraged to work with more criterion and alternative.

1. Presentation
on Case
Study
Slide: 1
Course Title:
IPE Case Study
Course No.
IPE 3200

2. Location Selection for Silk Showroom
by Entropy Integrated PROMETHEE
and VIKOR in Rajshahi
Khairun Nahar
Assistant Professor
Department of Industrial& Production Engineering
Rajshahi University of Engineering & Technology
Name: Maidul Islam Sakib
Roll: 1605034
Name: Nahian Kawser Sifat
Roll: 1605052
Supervisor
Submitted by
Slide: 2

3. CONTENTS
01 02 LITERATURE
REVIEW
03 PROBLRM
STATEMENT
04 METHODOLOGY
INTRODUCTION
06 CONCLUSION
05 RESULT
Slide: 3

4. INTRODUCTION
● What is silk showroom ?
● Why location selection is important?
● What is the reason for choosing MCDM
for this case study?
Slide: 4

5. OBJECTIVES
Select location by
PROMETHEE
Select location by
VIKOR
Select the best
alternative by
comparing both
PROMETHEE &
VIKOR
Slide: 5

6. LITERATURE REVIEW
Authors Working area Findings
Noreen Wadud
(2018)
present condition of
silk business in
Rajshahi city
Give recommendation
from silk enterprise
owner
Md. Nazrul Islam,
Shamem Ara Mili, S.
M. Nazmul Hasan
(2010)
Problem facing silk
industry in Bangladesh
poor advertising,
limited showroom
Slide: 6

7. LITERATURE REVIEW
Authors Method Application area Region
Hussain, Mandal, and
Mondal(2017)
Entropy, COPRAS,
MOORA
Selection of material India
Athawale,
Chatterjee, and
Chakraborty(2012)
PROMETHEE II, AHP
Facility location
selection
India
Kabir and Sumi
(2014)
F-AHP, PROMETHEE
Location selection of
a power substation
Bangladesh
Samanlioglu and
Aya (2017)
F-AHP,
F-PROMETHEE
Location alternative
for solar power plant
Turkey
Dağ, Sündüs &
Önder (2013)
VIKOR, AHP
Facility location of a
label manufacturing
company
Istanbul
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8. LITERATURE REVIEW
Authors Comparison of methods Remark
Gul(2016) Review 343 paper of VIKOR
VIKOR is compromised ranking
method, with help of AHP,
Entropy give improve result
Kamble,
Vadirajacharya, and
Patil(2018)
TOPSIS & PROMETHEE
Suggest both as logical,
systematic & convenient
decision support tools
Genc(2014) PROMETHEE & TOPSIS
Both give stability in decision,
robustness is same in both
method
Opricovic and Tzeng
(2004)
VIKOR & TOPSIS
Give “close to ideal” result in
both method, TOPSIS use
vector normalization and VIKOR
use scalar normalization
Slide: 8

9. RESEARCH GAP
• In most cases, one MCDM is used to take decision. Though it's easy to take
decision but questions remain about the reliability of that decision.
• While it is difficult to make decision using two or more methods. But in that
case, decision maker has chance to compare the result, so the reliability
of the decision increases.
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10. Slide: 10
• Previous research paper
• Informal interview
• Understand the present
situation
Observational
Study
• Semi-structured question
• Collect primary data
Prepare
Questionnaire
• Approach various people
• Understand criterion, sub-
criterion, alternative for
location selection
Conduct
Interview
WAY OF
GETTING
CASE
STUDY
IDEA

11. PROPOSED
FRAMEWORK
Slide: 11

12. Criterion and Sub criterion Explanation
Cost Various costs associated with setting up a business.
Advance If the place is to be rented, a certain amount of money has to be
submitted to the authority which is conditionally or unconditionally
refunded after a certain period of time in the contract.
Floor charge The floor charge varies from place to place per square foot which is
payable and non-refundable every month.
Proximity to customers It refers to stay close to customers so that the customer's call can be
answered quickly.
Sale per day The amount of potential sales per day.
Characteristics of a specific location It can be a variety of facilities such as future expansion facilities, attitude
of local people in the area, political support, car parking facilities, nearby
food stalls, entertainment facilities, transportation facilities, security etc.
Availability of space How easily find the place where the business is supposed to be traded
can be run based on various features such as cost, competition, strong
networking, political and social stability etc.
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13. PROBLEM STATEMENT
Silk business has numerous options for establishing a showroom. The
main question is which one of these options should be selected. The
distinguishing matters to setup the showrooms lie in the cost, proximity
to customers, characteristics of a specific location. Under those major
criteria, sub-criteria are advance, floor charge, per day sale, availability
of space. It is costly to set up showroom in all the possible places at
the same time. Therefore, it is necessary to decide on the basis of
different criteria, sub-criteria, in which place it would be better to set
up a showroom first.
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14. METHODOLOGY
1 DATA INPUT
3 RANKING
ALTERNATIVES
USING PROMETHEE
& VIKOR
2 WEIGHT
CALCULATION
USING
ENTROPY
4 COMPARISON
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15. Step 1: Normalize the decision matrix.
Step 2: Compute entropy
Step 3: Compute the weight vector.
Weight
Calculation
by
Entropy
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16. Normalize the Evaluation
matrix (decision matrix).
01
05
Determine the leaving and
the entering outranking flows
03
Calculate the preference
function.
06
Calculate the net outranking
flow for each alternative
04
Calculate the aggregate
preference
02
Calculate the evaluate differences
of ith
alternative with respect to
other alternatives.
Determine the ranking of all the
considered alternatives
depending on the values of φ (a)
07
PROMETHEE (Ranking Alternatives)
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17. Find best (Xi
+
) i.e. (Xij)max for beneficial, (xij)min for non-
beneficial and worst (Xi
−
) i.e. (Xij)min for beneficial, (xij)max for
non-beneficial
01
Rank the order of preference
05
Calculate the VIKOR index, Qi = µ ∗
Si− S∗
S−−S∗ + 1 − µ ∗
Ri− R∗
R−−R∗ , µ is the weight of the maximum group utility and is
usually set to 0.5)
04
Calculate utility measure, Si = j=1
m
(Wj ∗
Xi
+
−Xij
Xi
+−Xi
−) , Wj is the
weight of the j th
criterion
Calculate regret measure, Ri = max
j
(Wj ∗
Xi
+
−Xij
Xi
+−Xi
−)
02
Find S∗
= min
i
Si , S−
= max
i
Si , R∗
= min
i
Ri , R−
= max
i
Ri
03
VIKOR
(Ranking
Alternatives)
Slide: 17

18. CALCULATION
Weight and rank are calculated by Microsoft Excel.
Slide: 18

19. RESULT
4
Methods
2
criteria
4
alternatives
PROMETHEE
VIKOR
0
1
2
3
4
Saheb
Bazar
Theme
Omar Plaza
Sagor Para Rani Bazar
Rank From PROMETHEE & VIKOR
PROMETHEE VIKOR
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20. RESULT ANALYSIS
Rani Bazar > Sagorpara > Theme Omar Plaza> Saheb Bazar is the position of the
alternatives for both PROMETHEE and VIKOR according to the rank. So, it is clear that
both methods have been given the same result with respect to associated data with
different criteria.
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21. Discussion
Although some criterion is more preferable in some location but when all criteria are
taken into consideration and putted into couple of MCDM method then “Rani Bazar” is
the most suitable location according to all collected data and criteria. So, according to
this case study with all data and criteria regarding to location selection decision, authority
should consider “Rani Bazar” as priority of choice to establish any showroom related to
silk goods.
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22. CONCLUSION
Choosing proper location selection is very important for various purposes. With this in mind, MCDM
may offer the best solution which has been demonstrated here. In this case study, MCDM has found the
best alternative for the new location of the silk showroom in Rajshahi where most of the data were based
on opinion of individuals regarding to location, as fixed data for any location is not always available and
most contractual relationships are built on effective negotiation which may influence facility
location related decisions. That's why if others do the same thing with different data, the result
may change.
.
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23. REFERENCES
[1] N. Wadud, “The Uses of Rajshahi Silk in Current Fashion Trend in Bangladesh,” 2018.
[2] Md. Nazrul Islam, Shamem Ara Mili, S. M. Nazmul Hasan, “Problems and Prospects of Silk Industry
in Bangladesh,” vol. 1, no. 1, pp. 1–36, 2010.
[3] S. A. I. Hussain, U. kumar Mandal, and S. P. Mondal, “Entropy based MCDM approach for Selection
of material,” Natl. Lev. Conf. Eng. Probl. Appl. Math., no. May 2016, pp. 1–7, 2017.
[4] V. M. Athawale, P. Chatterjee, and S. Chakraborty, “Decision making for facility location selection
using PROMETHEE II method,” Int. J. Ind. Syst. Eng., vol. 11, no. 1–2, pp. 16–30, 2012, doi:
10.1504/IJISE.2012.046652.
[5] G. Kabir and R. S. Sumi, “Power substation location selection using fuzzy analytic hierarchy
process and PROMETHEE: A case study from Bangladesh,” Energy, vol. 72, pp. 717–730, 2014, doi:
10.1016/j.energy.2014.05.098.
[6] F. Samanlioglu and Z. Aya, “A fuzzy AHP-PROMETHEE II approach for evaluation of solar power
plant location alternatives in Turkey,” J. Intell. Fuzzy Syst., vol. 33, no. 2, pp. 859–871, 2017, doi:
10.3233/JIFS-162122.
[7] E. Dağ, Sündüs & Önder, “Decision-Making for Facility Location Using Vikor Method,” J. Int. Sci.
Publ. Econ. Bus. , Vol. 7 , Part 1 J. Int. Sci. Publ. , vol. 7, pp. 308–330, 2013.
[8] M. Behzadian, R. B. Kazemzadeh, A. Albadvi, and M. Aghdasi, “PROMETHEE: A comprehensive
literature review on methodologies and applications,” Eur. J. Oper. Res., vol. 200, no. 1, pp. 198–215,
2010, doi: 10.1016/j.ejor.2009.01.021.
[9] M. Gul, E. Celik, N. Aydin, A. T. Gumus, and A. F. Guneri, “A state of the art literature review of
VIKOR and its fuzzy extensions on applications,” Appl. Soft Comput. J., pp. 1–30, 2016, doi:
10.1016/j.asoc.2016.04.040.
[10] S. G. Kamble, K. Vadirajacharya, and U. V Patil, “Comparison of multiple attribute decision-making
methods—TOPSIS and PROMETHEE for distribution systems,” in Advances in Intelligent Systems
and Computing, vol. 810, Springer Singapore, 2018, pp. 669–680.
[11] T. Genc, “Sensitivity analysis on PROMETHEE and TOPSIS weights,” Int. J. Manag. Decis. Mak., vol.
13, no. 4, pp. 403–421, 2014, doi: 10.1504/IJMDM.2014.065359.
[12] S. Opricovic and G. H. Tzeng, “Compromise solution by MCDM methods: A comparative analysis
of VIKOR and TOPSIS,” Eur. J. Oper. Res., vol. 156, no. 2, pp. 445–455, 2004, doi: 10.1016/S0377-
2217(03)00020-1.
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