Abstract

Strategic warehouse location-allocation problem is a multi-staged decision-making problem having both numerical and qualitative criteria. In order to survive in the global business scenario by improving supply chain performance, companies must examine the crossfunctional drivers in the optimization of logistic systems. A meticulous observation makes evident that strategy warehouse location selection has become challenging as the number of alternatives and conflicting criteria increases. The issue becomes particularly problematic when the conventional concept has been applied in dealing with the imprecise nature of the linguistic assessment. The qualitative decisions for selection process are often complicated by the fact that often it is imprecise for the decision makers. Such problem must be overcome with defined efforts. Fuzzy multi-criteria decision making methods have been used in this research as aids in making location-allocation decisions. The anticipated methods in this research consist of two steps at its core. In the first step, the criteria of the existing problem are inspected and identified and then the weights of the sector and subsector are determined that have come to light by using Fuzzy AHP. In the second step, eligible alternatives are ranked by using TOPSIS and Fuzzy TOPSIS comparatively. A demonstration of the application of these methodologies in a real life problem is presented.

Highlights

  • Chain management has become a key aspect that has implications for effective and efficient management of industrial relations

  • As some of the evaluation criteria are subjective and qualitative in nature, fuzzy analytic hierarchy process (FAHP) is developed as an alternative to alleviate the deficiencies of the classical AHP and to ease the adaptation to real life problems through the linguistics variables represented by triangular fuzzy numbers (TFN) as an extension of AHP

  • This paper has presented a structured model using fuzzy analytic hierarchy process (FAHP) and fuzzy TOPSIS method as an effective tool for selecting the most desirable facility location

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Summary

Introduction

Chain management has become a key aspect that has implications for effective and efficient management of industrial relations. It has become an important focus for firms and organizations to obtain a competitive advantage (Carrera & Mayorga, 2008). A key driver of the supply chain performance, provides economies of scale through efficient operations, storage capacity and a central location with the goal of minimizing cost and fulfillment times. With its need to trade-off multiple criteria exhibiting ambiguity and fuzziness, location selection is a multi-criteria decision-making problem. Kahraman et al (2003) pointed out that the selection of a warehouse location among alternative locations is a multi-criteria decision-making problem including both quantitative and qualitative criteria.

Literature review
MCDM methods
Determining the criteria weights by FAHP
Fuzzy sets and fuzzy numbers
The methodology of FAHP
Ranking alternatives
The TOPSIS method
The fuzzy TOPSIS method
Proposed framework with example
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Results and discussions
Conclusions and future work
Full Text
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