An integrated approach to decision-making in order to select logistics centre locations

Abstract

Multicriteria decision-making (MCDM) models are widely used in selection problems in the literature. Taking into account the significance of selection and ranking of different locations, it is necessary to compare, as objectively as possible, the influences of various criteria and reduce them to a common function, i.e. present the methodology of solving complex problems associated with ranking of alternatives. In this study, an integrated approach which employs fuzzy analytic hierarchy process (F-AHP) and modified preference ranking organization method for enrichment evaluations (MODIPROM) together, is proposed for the optimal logistics centre locations. Changes in the final ranking indicate the importance of determining the relative weights in the process of multicriteria analysis. In order to confirm the results obtained by the combined approach as well as proof of applicability and practicality of the same, the discussed problem is analyzed using standard methods of multicriteria analysis.