Decision analysis of warehouse productivity performance indicators to enhance logistics operational efficiency

Abstract

PurposeThe warehouse industry is one of the backbones in the logistics operation which involves several activities i.e. storage, receiving, picking and shipping of goods/cargoes. This study analyzes the most important warehouse productivity indicators for improving warehouse operation efficiency.Design/methodology/approachThis study presents an empirical methodology of the fuzzy analytical hierarchy process (FAHP) method, an integration between the fuzzy logic method with an analytical hierarchy process (AHP) method incorporated with the adoption of quantitative and systems theories under the modern management theory approach.FindingsThe results indicate that the weight values of the main criteria which lead by the criterion “Space (0.4005)” at the top ranking, followed by Information System (0.2445), Labor (0.2065) and Equipment (0.1484). In addition, the weight values and ranking of the 16 sub-criteria are also highlighted which the sub-criterion “Warehouse Management System (0.2445)” scores the highest weight value and followed by Storage Space Utilization (0.1043) and Throughput (0.0722) accordingly.Research limitations/implicationsFinally, this research contributed to enrich the literature, while highlighting a series of recommendations on the top three most significant productivity performance indicators that can be useful in further research.Originality/valueA generic analysis model developed with the adoption of three study theories: quantitative, system and productivity theories.