Optimization of warehouse location through fuzzy multi-criteria decision making methods

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.Growing Science Ltd. All rights reserved. 5

Literature Review on Success Factors and Methods Used in Warehouse Location Selection

“…Distribution type warehouses; [4], [8], [9], [12], [13], [16], [17], [22], [26], [33]- [35], [39], [41], [42], [44], [46]- [48], [52] are to store various products from different suppliers, and for different customers. Production type warehouses; [5], [7], [20], [23], [27], [29], [31], [36]- [38], [50], [53] are for products with different characteristics in a production facility. Contract type warehouses; [6], [10], [11], [15], [18], [21], [30], [32], [45], [49] are to carry out warehousing for different customers.…”

Bir Lojistik Firması için Çok Ölçütlü Karar Verme Yöntemleri İle İç Anadolu Bölgesinde Depo Yeri Seçimi

“…Aktepe ve Ersöz [12], bir döküm firması için AHP, VIKOR ve MOORA yöntemlerini kullanarak, 11 alternatif ilden 3 tanesinde depo kurulması kararı almışlardır. Karmaker ve Saha [13], depo yer seçimi probleminde Bulanık AHP kullanılarak ağırlıkları belirlemiş, TOPSIS ve Bulanık TOPSIS ile de alternatiflerin sıralamasını yapmışlardır. Cömert ve Yener [14], bir gıda firması için 4 ana kriteri Bulanık AHP yönteminde ele alınarak depo yeri seçimi üzerine durmuşlardır.…”

Developing a fuzzy ANP model for performance appraisal based on firm strategy

“…It allows us to address unspecific and fuzzy characteristics by using a membership function that partitions a fuzzy set into subsets of members that ''incompletely belong to" or ''incompletely do not belong to" a given subset (Chen & Chen, 2010). This theory provides a different way to view the problem of modeling uncertainty and offers a wide range of computational tools to aid decision making (Karmaker & Saha, 2015). A major contribution of fuzzy set theory is its capability of representing vague data.…”