A hybrid model for distribution center location selection

Abstract

This research aims to propose an integrated MCDM model to support the distribution center location selection. The integrated approach of ANP and TOPSIS was employed to address the distribution center selection problem. The ANP method was used to define the weights of the selection criteria, whereas the TOPSIS was applied to rank alternatives. The proposed model was then applied into Dong Nai province in Vietnam to select the best alternatives to be the distribution center. The results showed that Long Khanh is the most appropriate location for the distribution center as it is ranked first in the order of preference for selection. The proposed model provides the decision makers with more powerful methods than conventional ones. Therefore, the model can be applied to distribution center location selection in all industries. In terms of theoretical contribution, the proposed criteria can contribute to literature review in the selection of location as well as the concept of distribution center. In addition, the research also provides insight for firms and public authorities in making decision on distribution center location based on limited resources as well as avoiding the misuse of funds.