Abstract
Distribution is a strategic function of logistics in different companies. Establishing distribution centers (DCs) in appropriate locations helps companies to reach long-term goals and have better relations with their customers. Assessment of possible locations for opening new DCs can be considered as an MCDM (Multi-Criteria Decision-Making) problem. In this study, a decision-making approach is proposed to assess DC locations. The proposed approach is based on Stepwise Weight Assessment Ratio Analysis II (SWARA II), Method based on the Removal Effects of Criteria (MEREC), Weighted Aggregated Sum Product Assessment (WASPAS), simulation, and the assignment model. The assessment process is performed using the subjective and objective criteria weights determined based on multiple experts’ judgments. The decision matrix, subjective weights and objective weights are modeled based on the triangular probability distribution to assess the possible alternatives. Then, using simulation and the assignment model, the final aggregated results are determined. A case of DC locations assessment is addressed to show the applicability of the proposed approach. A comparative analysis is also made to verify the results. The analyses of this study show that the proposed approach is efficient in dealing with the assessment of DC locations, and the final results are congruent with those of existing MCDM methods.
Highlights
Distribution is a strategic function of logistics in different companies
The multi-criteria decision-making (MCDM) approaches used in these studies include Decision Making Trial and Evaluation Laboratory (DEMATEL), Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), Grey Relational Analysis (GRA), Multi-Objective Optimization on the basis of Ratio Analysis (MOORA), ELimination Et Choix Traduisant la REalité (ELECTRE), Operational Competitiveness Rating Analysis (OCRA), Analytic Hierarchy Process (AHP), Analytic Network Process (ANP), Preference Ranking Organization Method for Enrichment of Evaluations (PROMETHEE), Weighted Aggregated Sum Product Assessment (WASPAS), VIseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR), Combined Compromise Solutions (CoCoSo), Method based on the Removal Effects of Criteria (MEREC) and Stepwise Weight Assessment Ratio Analysis (SWARA)
Due to the importance of distribution centers in supply chain management and logistics, selecting appropriate locations for them becomes essential for several companies
Summary
Distribution is a strategic function of logistics in different companies. Establishing distribution centers (DCs) in appropriate locations helps companies to reach long-term goals and have better relations with their customers. Assessment of possible locations for opening new DCs can be considered as an MCDM (Multi-Criteria Decision-Making) problem. Bancroft studied the strategic role of the distribution centers He stated that warehousing is transportation with zero velocity, and it doesn’t add any value to the product stored in a warehouse, but on the other hand distribution is a dynamic process that moves the goods from the origin to the customer with a fairly continuous flow. Mathematical models are used to determine the optimal locations of the distribution centers based on different parameters like distance and expected demand, but in several cases, expert-based decisions are more suitable to assess the possible sites. To have more reliable results in an MCDM problem with multiple experts, we need to be able to consider the subjective and objective importance or weights of criteria
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