MCDM/A Based Design of Sustainable Logistics Corridors Combined with Suppliers Selection. The Case Study of Freight Movement to Iraq.

Abstract The paper is focused on developing a rational paradigm of solving a joint decision problem of selecting a supplier and designing the supply chain/ logistic corridor. We consider the design of a logistic solution in developing, politically, and military sensitive regions. Thus, we analyse the supply chains that deliver goods (electrical cables) to Iraq. The decision problem involves the selection of suppliers combined with the intuitive/ heuristic design of transportation logistic corridors. This joint decision problem (suppliers’ selection and logistics corridors design) is formulated as a multiple criteria ranking problem and solved with the application of the Multiple Criteria Decision Making/ Aiding (MCDM/A) methodology. Our approach is based on thorough analysis of the decision situation (internal and external conditions; decision makers, stakeholders; specific local constraints; existing expectations and preferences). We take into account the trade-offs and constraints (economic, political, social) to reach a compromise and most desirable solution. We carry out a series of computational experiments with the application of selected MCDM/A ranking methods, e.g. ELECTRE III/IV and AHP. We develop a universal decision model and adapt it to specific local circumstances and characteristic features of the applied decision tools, i.e. ELECTRE III/IV and AHP methods. We take into account the concept of sustainability in our analyses.