Multicriteria Approach towards the Sustainable Selection of a Teahouse Location with Sensitivity Analysis

Ji Chen, Jinsheng Wang, Tomas Baležentis, Fausta Zagurskaitė, Dalia Streimikiene and Daiva Makutėnienė
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Ji Chen: College of Statistics and Mathematics, Zhejiang Gongshang University, Hangzhou 310018, China
Jinsheng Wang: School of Business, Zhejiang Wanli University, Ningbo 315211, China
Fausta Zagurskaitė: Faculty of Economics and Business Administration, Vilnius University, LT-10222 Vilnius, Lithuania
Dalia Streimikiene: Lithuanian Institute of Agrarian Economics, LT-03105 Vilnius, Lithuania
Daiva Makutėnienė: Faculty of Economics and Management, Aleksandras Stulginskis University, LT-53361 Akademija, Lithuania

Sustainability, 2018, vol. 10, issue 8, 1-17

Abstract: The teahouse market has seen an expansion across various countries. In order to identify the most reasonable paths for development, the choice of location for the outlets needs to account for a number of conflicting criteria. Therefore, the multicriteria approach is required to effectively handle the location selection problem. In this paper, we develop a multicriteria framework for teahouse selection and apply it in the context of Lithuania. The indicator system is set up in order to capture the different aspects of the candidate locations. We also apply two multicriteria decision-making techniques (the evaluation based on distance from average solution (EDAS) method and the weighted aggregated sum product assessment with normalization (WASPAS-N) method) in order to ensure the robustness of the results. The weights of criteria were determined based on the expert survey. In addition, a Monte Carlo simulation was applied to check the sensitivity in changes of the criterion weights. The empirical application demonstrated validity of the proposed approach in choosing the optimal location of a teahouse.

Keywords: teahouse; location selection; multicriteria decision making; Monte Carlo simulation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:10:y:2018:i:8:p:2926-:d:164267

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