A hybrid analytic hierarchy process for clustering and ranking best location for logistics distribution center

Abstract

Facility location decisions play a critical role in the strategic design of supply chain networks. This paper discusses facility location problem with focus on logistics distribution center (LDC) in Balkan Peninsula. Methodological hybrid Analytical Hierarchy Process (AHP) and k-means method is proposed here and it is shown how such a model can be of assistance in analyzing a multi criteria decision-making problem. This research represents a continuation of two existing studies: (1) PROMETHEE II ranking method; and (2) combine Greedy heuristic algorithm and AHP. The experimental results in our research could be well compared with other official results of the feasibility study of the LDC located in Balkan Peninsula.