Literature Review: Application of MCDM Methodology to Logistics Location Problems

Abstract

This article provides a comprehensive overview of the application of Multi-Criteria Decision Making (MCDM) methods in the field of logistics location selection. It traces the historical development of MCDM methods from their inception in the 1970s to the sophisticated models and algorithms used today, highlighting the evolution from simple models to complex, intelligent algorithms that incorporate environmental and social considerations. The article emphasizes the importance of combining various MCDM methods to leverage their strengths and address their limitations. It showcases the successful application of these hybrid models in diverse scenarios, such as urban transit hub optimization, inland dry port selection, and the positioning of emergency logistics centers. The article concludes by identifying current challenges, such as handling uncertainties and the complexity of models, and suggests future directions for research, including the development of adaptive models and the integration of artificial intelligence and big data analytics to enhance decision-making in logistics location selection.