A two-stage decision support model for a retail distribution center location
This paper proposes a model to support the decision-making process of selecting the location of a distribution center for the retail sector. The model was structured in two stages to consider objective and subjective criteria (multicriteria) for the decision-making process. In the first stage, a nonlinear programming model was used to establish a reference site in the region under analysis and identify five cities near that location. The second stage consisted of building a hierarchic structure for making decisions based on criteria and sub-criteria relevant to the process of deciding the location of a distribution center, and applying the Analytic Hierarchy Process (AHP) multicriteria method for all five previously selected candidate cities. The model was used to define the location of a distribution center for a furniture and appliance retailer in the state of Paraná, Brazil. The results show that the criteria transportation and market have the most influence in the decision-making process, and that the best alternative for the distribution center was the city of Arapongas (PR). The methodology proved to be efficient in the decision analysis presented herein.
J. Korpela, A. Lehmusvaara, J. Nisonen. “Warehouse operator selection by combining AHP and DEA methodologies”. International Journal of Production Economics. Vol. 108. 2007. pp. 135-142.
M. Melo, S. Nickel, F. Saldanha. “Facility location and supply chain management – A review”. European Journal of Operational Research. Vol. 196. 2009. pp. 401-412.
S. Owen, M. Daskin. “Strategic facility location: A review”. European Journal of Operational Research. Vol. 111. 1998. pp. 423-447.
R. Aboolian, O. Berman, D. Krass. “Competitive facility location and design problem”. European Journal of Operational Research. Vol. 182. 2007. pp. 40-62.
D. Sule. Logistics of Facility Location and Allocation. 1st ed. Ed. CRC Press. New York, USA. 2001. pp. 476.
S. Huijun, G. Ziyou, W. Jianjun. “A bi-level programming model and solution algorithm for the location of logistics distribution centers”. Applied Mathematical Modelling. Vol. 32. 2008. pp. 610-616.
A. Klose, A. Drexl. “Facility location models for distribution system design”. European Jou[rnal of Operational Research. Vol. 162. 2005. pp. 4-29.
B. Roy, D. Vanderpooten. “The European School of MCDA: Emergence, Basic Features and Current Works”. Journal of Multicriteria Decision Analysis. Vol. 5. 1996. pp. 22-38.
M. Banville, M. Landry, J. Martel, C. Boulaire. “A stakeholver approach to MCDA”. System Research and Behavioral Science. Vol. 15. 1998. pp. 502-519.
O. Vaidya, S. Kumar. “Analytic hierarchy process: An overview of applications”. European Journal of Operational Research. Vol. 169. 2006. pp. 1-29.
F. Silva, R. Souza. “AHP na seleção de caminhões coletores-compactadores de resíduos sólidos”. Acta Scientiarum Technology. Vol. 33. 2011. pp. 259-264.
G. Tzeng, J. Huang. Multiple attribute decision making: methods and applications. 1st ed. Ed. CRC Press. Florida, USA. 2011. pp. 349.
T. Saaty, L. Vargas. Models, Methods, Concepts & Applications of the Analytic Hierarchy Process. 1st ed. Ed. Kluwer Academic Publishers. New York, USA. 2001. pp. 346.
M. Xiaohua. An empirical research on selecting location of chain convenience store. Proceedings of the 4th International Conference on Wireless Communications, Networking and Mobile Computing (WiCOM ‘08). Dailian, China. 2008. pp. 1-6.
H. Lorentz. “Production locations for the internationalising food industry: case study from Russia”. British Food Journal. Vol. 110. 2008. pp. 310-334.
W. Ho, C. Lee, G. Ho. “Optimization of the locationallocation problem in a customer-driven supply chain”. Operations Management Research. Vol. 1. 2008. pp. 69-79.
F. Cebi, Z. Zeren. A decision support model for location selection: Bank branch case. Proceedings of the Portland International Conference on Management of Engineering & Technology (PICMET). Cape Town, South Africa. 2008. pp. 1069-1074.
S. Chi, R. Kuo. Examination of the influence of fuzzy analytic hierarchy process in the development of an intelligent location selection support system of convenience store. Proceedings of the Joint 9th IFSA World Congress and 20th NAFIPS International Conference. Vancouver, Canada. 2001. pp. 1312-1316.
Z. Gao, K. Yoshimoto, S. Ohmori. Application of integrative analytic hierarchy process and 0-1 integer programming to retail stores location in logistic system. Proceedings of the 4th International Joint Conference on Computational Sciences and Optimization (CSO). Yunnan, China. 2011. pp. 584-586.
W. Guanghua, S. Zhanjiang. Application of AHP and Steiner tree problem in the location-selection of logistics distribution center. Proceedings of the 2nd International Conference on Networking and Digital Society (ICNDS). Wenzhou, China. 2010. pp. 290- 293.
W. Ho, W. Emrouznejad. “Multi-criteria logistics distribution network design using SAS/OR”. Expert Systems with Applications. Vol. 36. 2009. pp. 7288- 7298.
G. Hua. Location selection of recycle center by combining AHP and DEA methodologies. Proceedings of the International Conference on Logistics Systems and Intelligent Management. Harbin, China. 2010. pp. 884-888.
Y. Kayikci. “A conceptual model for intermodal freight logistics centre location decisions”. Procedia Social and Behavioral Sciences. Vol. 2. 2010. pp. 6297-6311.
T. Li, L. She. Retail location decision-making based on the combination of AHP and Entropy Weight. Proceedings of the 3rd International Joint Conference on Computational Science and Optimization (CSO). Huangshan. China. 2010. pp. 136-139.
D. Oliveira, J. Rodrigues, L. Silva, P. Oliveira. “Multi-criteria analysis in the strategic environmental assessment of the sugar and alcohol sector”. Acta Scientiarum Technology. Vol. 34. 2012. pp. 303-311.
S. Wang, P. Liu. The evaluation study on location selection of logistics center based on fuzzy AHP and TOPSIS. Proceedings of the International Conference on Wireless Communications, Networking and Mobile Computing (WiCom). Shanghai, China. 2007. pp. 3779-3782.
S. Tiang, Z. Yan, L. Pei, T. Xiangpeng. Empirical analysis of chinese urban residential micro-location. Proceedings of the International Conference on Management and Service Science (MASS). Wuhan, China. 2009. pp. 1-4.
J. Yang, H. Lee. “An AHP decision model for facility location selection”. Facilities. Vol. 15. 1997. pp. 241- 254.
J. Korpela, M. Tuominen. “A decision aid in warehouse site selection”. International Journal of Production Economics. Vol. 45. 1996. pp. 169-180.
Copyright (c) 2018 Revista Facultad de Ingeniería
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
Authors can archive the pre-print version (i.e., the version prior to peer review) and post-print version (that is, the final version after peer review and layout process) on their personal website, institutional repository and / or thematic repository
- Upon acceptance of an article, it will be published online through the page https://revistas.udea.edu.co/index.php/ingenieria/issue/archive in PDF version with its correspondent DOI identifier
The Revista Facultad de Ingeniería -redin- encourages the Political Constitution of Colombia, chapter IV
Chapter IV Sanctions 51
The following shall be liable to imprisonment for two to five years and a fine of five to 20 times the legal minimum monthly wage: (1) any person who publishes an unpublished literary or artistic work, or part thereof, by any means, without the express prior authorization of the owner of rights; (2) any person who enters in the National Register of Copyright a literary, scientific or artistic work in the name of a person other than the true author, or with its title altered or deleted, or with its text altered, deformed, amended or distorted, or with a false mention of the name of the publisher or phonogram, film, videogram or software producer; (3) any person who in any way or by any means reproduces, disposes of, condenses, mutilates or otherwise transforms a literary, scientific or artistic work without the express prior authorization of the owners thereof; (4) any person who reproduces phonograms, videograms, software or cinematographic works without the express prior authorization of the owner, or transports, stores, stocks, distributes, imports, sells, offers for sale, acquires for sale or distribution or in any way deals in such reproductions. Paragraph. If either the material embodiment or title page of or the introduction to the literary work, phonogram, videogram, software or cinematographic work uses the name, business style, logotype or distinctive mark of the lawful owner of rights, the foregoing sanctions shall be increased by up to half.