Abstract
To remain competitive and respond to rapidly changing markets, we need to increase flexibility in today's global marketplace. In this respect, the selection of the appropriate mode of transport is one of the most important functions to be performed by logistics. The selection of the appropriate mode of transport is a multi-criteria problem involving both quantitative and qualitative criteria. This paper deals with the selection of the mode of transport using the Analytic Hierarchy Process method (AHP). AHP is a method of decomposing a complex unstructured situation into simpler components to create a hierarchical system problem. This paper describes a general model of selection of transport mode using AHP including its application to a manufacturing company that selects the appropriate mode of transport from three potential transport modes. The aim of this paper is to create a useful decision support tool for selection of the transport mode using the AHP method within distribution logistics of motor fuels. This tool helps companies to make the right decision on the choice of transport mode by taking into account different importance of the different criteria that influence the decision-making process.
Highlights
Selecting the appropriate mode of transport within the distribution logistics is a priority for most companies in various business sectors
The main contribution of this article is a literature review in the field of criteria influencing the choice of transport mode within the distribution logistics of motor fuels
The article contains the proposal of a decision-making tool for selection of the transport mode using the Analytic Hierarchy Process method (AHP) method within distribution logistics of motor fuels
Summary
Selecting the appropriate mode of transport within the distribution logistics is a priority for most companies in various business sectors. The goal of the companies is to optimise costs and other distribution parameters. Due to these facts, this issue is a complex logistic decision-making problem. Motor fuels are usually transported by the following modes of transport: road, rail, water, and pipeline or combined. The topicality of this issue is confirmed by the fact that the selection of a suitable mode of transport has gained great importance in the management of entire supply chains due to globalisation, reducing negative environmental impacts, increasing added value, and technological changes. The change of people’s way of life over time has resulted, in a relatively short period, in a great increase of the need for distribution of goods [2]
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