Development of an integrated transport system in distribution centres: A fa'wot analysis

Abstract

Strategic planning which focuses on transport is based fundamentally on adjusting to changes in the operational environment. Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis is a commonly used tool for analyzing both the internal and external environments in order to attain a systematic approach and support for a decision-making situation. In this study, we show how some weaknesses of SWOT analysis can be avoided and how it can be elaborated upon in order to provide a more comprehensive decision support. The research was based on expert interviews, which were structured according to the principles of value-focused thinking and SWOT analysis. FA'WOT is a hybrid method combining the well known SWOT analysis and the Fuzzy Analytic Hierarchy Process (FAHP). This paper presents modification of the Saaty-s scale, in which fuzzy numbers have been used for determining weight values of criteria and alternatives. Unlike the papers describing the procedure of fuzzification of the AHP/ANP method, the method described here takes into account the level of uncertainty of the decision maker. After application of the AHP/ANP method in this way, the values of the functions criteria for each considered alternative are obtained. Certain values of the level of certainty are corresponding to the obtained values of the functions criteria. It is possible to generate various sets of the values of criterion functions. Using this procedure it is possible to identify and rank the factors affecting the functioning of a system. FAHP’s connection to SWOT yields analytically determined priorities for the factors included in SWOT analysis and makes them commensurable. The aim in applying the hybrid method is to improve the quantitative information basis of strategic planning processes. The hybrid FA'WOT model is used in determining the development strategy for integrated transport in the Lafarge Beocin cement plant.