Multi criteria decision making methods for location selection of distribution centers

Abstract

In recent years, major challenges such as, increase in inflexible consumer demands and to improve the competitive advantage, it has become necessary for various industrial organizations all over the world to focus on strategies that will help them achieve cost reduction, continual quality improvement, increased customer satisfaction and on time delivery performance. As a result, selection of the most suitable and optimal facility location for a new organization or expansion of an existing location is one of the most important strategic issues, required to fulfill all of these above mentioned objectives. In order to sustain in the global competitive market of 21st century, many industrial organizations have begun to concentrate on the proper selection of the plant site or best facility location. The best location is that which results in higher economic benefits through increased productivity and good distribution network. When a choice is to be made from among several alternative facility locations, it is necessary to compare their performance characteristics in a decisive way. As the facility location selection problem involves multiple conflicting criteria and a finite set of potential candidate alternatives, different multicriteria decision-making (MCDM) methods can be effectively applied to solve such type of problem. In this paper, four well known MCDM methods have been applied on a facility location selection problem and their relative ranking performances are compared. Because of disagreement in the ranks obtained by the four different MCDM methods a final ranking method based on REGIME has been proposed by the authors to facilitate the decision making process.

A Hybrid Multi-Criteria Decision-Making Model for Evaluating Companies’ Green Credit Rating

“…Ballı and Korukoglu [68] and Chakraborty et al [69] suggested using both the Spearman and Kendall tau correlation tests to examine the correlation of two rankings (the results of Tables 3 and A5). The calculated results show that the Spearman correlations and the Kendall coefficient were 0.981 and 0.9, respectively.…”

ELECTRE I Based Relevance Decision-Makers Feedback to the Location Selection of Distribution Centers

“…In the literature, studies on problem of DCs' location selection under certainty have focused on three categories of solution techniques [35] (see Table 1 the problem in question. We cite the method based on Analytic Hierarchy Process (AHP) and -means method [11] and the method based on REGIME [12]. The methods in this first category are used in the case where the number of predetermined alternatives are limited.…”

“…Multicriteria decision-making Method based on AHP and -means method Simić et al [11] Method based on REGIME Chakraborty et al [12] Metaheuristics for the multiobjective decision-making…”

“…Nature of the Problem. Much of the literature has studied the problem of selecting DCs' location under a certain and a deterministic environment [9,11,12,[15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32]. This kind of problem was characterized as static and deterministic, and parameters are known and fixed [33].…”

Efficiency Analysis of the Turkish Red Crescent between 2012 and 2014

“…It was also used in the process selection in the manufacturing sector (Parkan & Wu, 1998) and performance measurement in government services (Parkan, 1999). Other issues where OCRA has been used are as follows: robot selection (Parkan & Wu, 1999), measurement of the performance of an investment bank (Parkan & Wu, 1999), competitive analysis of manufacturing plants of processed food industry (Jayanthi et al, 1999), measurement of the operational performance of a public transit company (Parkan, 2002), the performance of drugstore operations (Parkan, 2003), gauging the performance of a supply chain (Parkan & Wang, 2007), location selection of distribution centers (Chakraborty et al, 2013), material selection (Chatterjee & Chakraborty, 2012;Darji & Rao, 2014), and performance analysis of public banks in Turkey (Ö zbek, 2015).…”