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 cross-functional 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.