Application of Fuzzy AHP and TOPSIS methods for a Foreign Direct Investment in the aluminium industry sector

Abstract

Multi-Criteria Decision Making (MCDM) is one of the most well-known branch of decision making, representing a starting point for solving important practical issues. In the present thesis, two methods are applied: Fuzzy AHP and TOPSIS . In order to deal with this problem, the objective of the thesis is to validate or not a future possible investment proposed by a Paduan (IT) aluminium enterprise. It would like to implement a Foreign Direct Investment (FDI) in Morocco in a local firm belonging to the same industry sector. The goal of the thesis is the identification of the best country in the Mediterranean zone where apply the FDI for a medium-large aluminium enterprise of Italian North-East. The final result will not validate the investment proposed by the Paduan firm and reward Morocco as not the best area for this type of investment. Fuzzy AHP method identifies the factors (cost, labour characteristics, political and economic factors…) necessary to consider for this type of investment, while TOPSIS method, through the previous result, creates the final rank of countries from the best one where apply an FDI for an aluminium company to the worst one.