Optimal location selection for an international distribution center by using a new hybrid method

Abstract

The selection of a location for an international distribution center (IDC) is a most important decision for international logistics managers owing to the need to consider various criteria that involve a complex decision process in which multiple requirements and uncertain conditions have to be taken into consideration simultaneously. Moreover, the criteria often exist simultaneously as independent and dependent characteristics when the problems of location selection have become very complex. A new hybrid method combining the concepts of fuzzy DEMATEL and a new method of fuzzy multiple criteria decision-making (MCDM) in a fuzzy environment is proposed to solve the problems of IDC location selection. In this paper, the fuzzy DEMATEL is proposed to arrange a suitable structure between criteria, and the analytic hierarchy/network process (AHP/ANP) is used to construct weights of all criteria. The linguistic terms characterized by triangular fuzzy numbers are used to denote the evaluation values of all alternatives versus various criteria. Finally, the aggregation fuzzy assessments of different alternatives are ranked to determine the best selection. Furthermore, this paper uses an empirical case for optimal location selection for an IDC in Pacific Asia to illustrate the proposed method, and the results show that the method is an effective means for tackling fuzzy MCDM problems.