Robust multi-criteria decision making methodology for real life logistics center location problem

Abstract

A logistics center is the hub of a specific area, within various logistics-related activities (distribution, storage, transportation, consolidation, handling, customs clearance, imports, exports, transit processes, infrastructural services, insurance, banking, etc.) that are performed on a commercial basis. Determining the location of the logistics center is an important decision regarding cost and benefit analysis. A three-stage methodology has been applied for presenting a framework for logistics center location selection in the context of Kayseri’s logistics development plan. The first stage includes the determination of criteria through literature review and interviews with experts. The second stage includes the weighting of determined criteria using linear BWM (best–worst method). The third stage includes the ranking of locations using the evaluation based on distance from average solution (EDAS) method with different distance measures. Our proposed methodology BWM–EDAS and also EDAS with different distance measures, which are applied for the first time in the literature, provides helpful findings to rank the logistics center locations. Lastly, sensitivity analysis is conducted to validate the robustness.