Hybrid multi-attribute decision making methods: An application

Abstract

The location selection of warehouses is considered to be a strategic decision for logistics enterprises in improving the quality of logistic services. In order to improve the science and accuracy of enterprise warehouse location decisions, in terms of hybrid multi-attribute decision-making problems and decision-maker expectations, this paper proposes an analytical method for site selection decisions of logistics enterprise warehousing centres based on the cumulative prospect theory. The research results demonstrate that the decision matrix with three information types, namely clear number, interval number and language phrase is transformed into a decision matrix with a consistent measure effect, which improves the accuracy of attribute representation. Moreover, the factors influencing the decision-making of warehouse locations with different attributes are endowed with subjective expectations, which can better adapt to the different needs and preferences of decision-makers. The results indicate that strategic ranking of decision-making schemes can be obtained by introducing a cumulative foreground theory to establish the value matrix relative to the reference point as well as calculating the comprehensive foreground value of each scheme. The effectiveness of this analytical method is proven with the use of certain feasible and effective examples.