Applying new hybrid method of analytical hierarchy process, Monte Carlo Simulation and PROMETHEE to prioritize and selecting appropriate target market

Abstract

Making decision to choose the appropriate target market is one of the key decisions in the success of firms, which has direct effect in the amount of their profits. The aim of this paper is to introduce and use of new hybrid method of AHP, Monte Carlo simulation and PROMETHEE to prioritize cities to establish retailers, considering different indices. The problem of this study is related to a factory, constructing premade pieces of buildings, that to introduce and distribute its new products is searching the new retailers in different cities. To prioritize cities, with the interview with experts and the studying of the previous works the indices have been determined and the hierarchy pattern has been made. Then using the hybrid method of AHP and Monte Carlo simulation the weights of the indices have been determined and then using PROMETHEE method the best city has been chosen and the other ones have been prioritized. From the benefits of the new introduced hybrid method with respect to other ways of selecting target markets is decreasing the risk and increasing the power of decision making.

Keywords

• Target selection
• AHP
• Monte Carlo Simulation
• PROMETHEE
• Hybrid methods