Logistics center site selection by ANP/BOCR analysis: A case study of Turkey

Site selection for logistics centers is one of the most strategic decisions in logistics. This study addresses the problem of logistics center site selection, using Analytic Network Process/Benefits, Opportunities, Costs and Risks, which is a multi-criteria decision making technique. The decision problem is applied to the city of Trabzon, which is an important city of the Eastern Black Sea Region in Turkey. First, the results are evaluated in terms of each sub-network and each group and, next, are consolidated for each alternative. They yield that Alternative A is the most appropriate logistics center location of all in Trabzon. Furthermore, the sensitivity analysis results emphasize that the decision model is robust.

[1]  Diederik J. D. Wijnmalen,et al.  Analysis of benefits, opportunities, costs, and risks (BOCR) with the AHP-ANP: A critical validation , 2007, Math. Comput. Model..

[2]  Gülfem Tuzkaya,et al.  An analytic network process approach for locating undesirable facilities: an example from Istanbul, Turkey. , 2008, Journal of environmental management.

[3]  Chen-Tung Chen,et al.  A fuzzy approach to select the location of the distribution center , 2001, Fuzzy Sets Syst..

[4]  Hua Yang,et al.  Inland port location model under Trans Texas Corridor concept , 2006 .

[5]  Chin-Shan Lu.  An Evaluation of Logistics Services' Requirements of International Distribution Centers in Taiwan , 2004 .

[6]  Şenol Erdoğmuş,et al.  Evaluating high-tech alternatives by using analytic network process with BOCR and multiactors , 2005 .

[7]  Ran Bi,et al.  Application of ANP in production line selection A case study for ERP sand table simulation evaluation , 2008, 2008 IEEE Conference on Cybernetics and Intelligent Systems.

[8]  Ker-Wei Yu,et al.  Application of a New Hybrid Fuzzy AHP Model to the Location Choice , 2013 .

[9]  Emin Gundogar,et al.  A Fuzzy Topsis Approach For Logistics Center Location Selection , 2011 .

[10]  Ozden Bayazit.  A New Methodology In Multi-criteria Decision Making: Analytic Network Process and An Application , 2002 .

[11]  Marián Šulgan,et al.  Logistics park development in Slovak Republic , 2006 .

[12]  Theo Notteboom,et al.  An application of multi-criteria analysis to the location of a container hub port in South Africa , 2011 .

[13]  Ieva Meidutė,et al.  Comparative analysis of the definitions of logistics centres , 2005 .

[14]  Amy J. C. Trappey,et al.  Business and logistics hub integration to facilitate global supply chain linkage , 2005 .

[15]  Gao Zi-You,et al.  A bi-level programming model and solution algorithm for the location of logistics distribution centers , 2008 .

[16]  Andrzej Montwiłł,et al.  The Role of Seaports as Logistics Centers in the Modelling of the Sustainable System for Distribution of Goods in Urban Areas , 2014 .

[17]  Luis Ferreira,et al.  Solving the Conflicts in Intermodal Freight Hub Locations Decisions , 2006 .

[18]  Shuang-Hua Yang,et al.  Hybrid Zigbee RFID sensor network for humanitarian logistics centre management , 2011, J. Netw. Comput. Appl..

[19]  Selin Hanife Eryürük.  Tekstil Ve Konfeksiyon Sektörleri Arasında Etkin Lojistik Faaliyetlerinin Gerçekleştirilmesi Amacıyla Bir Lojistik Merkez Yer Seçimi Ve Tasarımı , 2010 .

[20]  I. Kabashkin.  Logistics Centres Development in Latvia , 2007 .

[21]  Li Qing,et al.  Manufacturing Execution Systems (MES) assessment and investment decision study , 2006, 2006 IEEE International Conference on Systems, Man and Cybernetics.

[22]  Xiaobo Wang,et al.  Research on logistics distribution center location model and evaluation under electronic commerce , 2005, Proceedings of ICSSSM '05. 2005 International Conference on Services Systems and Services Management, 2005..

[23]  Peide Liu,et al.  The Evaluation Study on Location Selection of Logistics Center Based on Fuzzy AHP and TOPSIS , 2007, 2007 International Conference on Wireless Communications, Networking and Mobile Computing.

[24]  Chunling Sun,et al.  Study on third-party logistics service provider selection evaluation indices system based on analytic network process with BOCR , 2010, 2010 International Conference on Logistics Systems and Intelligent Management (ICLSIM).

[25]  Thomas L. Saaty,et al.  Theory and Applications of the Analytic Network Process: Decision Making With Benefits, Opportunities, Costs, and Risks , 2005 .

[26]  Shiwei He,et al.  Robust Optimization Model and Algorithm for Logistics Center Location and Allocation under Uncertain Environment , 2009 .

[27]  Ergün Eraslan,et al.  Priority determination in strategic energy policies in Turkey using analytic network process (ANP) with group decision making , 2008 .

[28]  A. Petrillo,et al.  Supply Chain Design by Integrating Multicriteria Decision Analysis and a Sustainability Approach , 2011 .

[29]  D. Grundey,et al.  Logistics Centre Concept through Evolution and Definition , 2007 .

[30]  A. Petrillo,et al.  MULTICRITERIA ANALYSIS TO EVALUATE INFLUENCE OF GREEN PRACTICES ON SUPPLY CHAIN PERFORMANCE , 2012 .

[31]  Bahadır Fatih Yıldırım,et al.  Evaluating Potential Freight Villages in Istanbul Using Multi Criteria Decision Making Techniques , 2014 .

[32]  Xiaodong Liu,et al.  Selection of logistics center location using Axiomatic Fuzzy Set and TOPSIS methodology in logistics management , 2011, Expert Syst. Appl..

[33]  Cathy Macharis,et al.  The importance of stakeholder analysis in freight transport , 2004 .

[34]  Ming-Shin Kuo,et al.  Optimal location selection for an international distribution center by using a new hybrid method , 2011, Expert Syst. Appl..

[35]  Jennifer S. Shang,et al.  A unified framework for multicriteria evaluation of transportation projects , 2004, IEEE Transactions on Engineering Management.

[36]  Valentina Ferretti,et al.  An analytic network process‐based approach for location problems: the case of a new waste incinerator plant in the Province of Torino (Italy) , 2010 .

[37]  Andrius Jaržemskis.  Research on Public Logistics Centre as Tool for Cooperation , 2007 .

[38]  Reza Zanjirani Farahani,et al.  Combination of MCDM and covering techniques in a hierarchical model for facility location: A case study , 2007, Eur. J. Oper. Res..

[39]  Maro Vlachopoulou,et al.  Geographic information systems in warehouse site selection decisions , 2001 .

[40]  George Mavrotas,et al.  Freight village design using the multicriteria method PROMETHEE , 2007, Oper. Res..

[41]  Ziyou Gao,et al.  Logistics distribution centers location problem and algorithm under fuzzy environment , 2007 .

[42]  Wei Guo,et al.  An Application of ANP with Benefits, Opportunities, Costs and Risks in Supplier Selection: A Case Study in a Diesel Engine Manufacturing Firm , 2007, 2007 IEEE International Conference on Automation and Logistics.

[43]  Khalid A. Eldrandaly,et al.  A COM-based Spatial Decision Support System for Industrial Site Selection , 2003 .

[44]  Xueyu Zhao,et al.  Study on Logistics Center Site Selection of Jilin Province , 2012, J. Softw..

[45]  R. J. Kuo,et al.  A decision support system for selecting convenience store location through integration of fuzzy AHP and artificial neural network , 2002, Comput. Ind..

[46]  Yuhong Yan,et al.  Shanghai Agricultural Products Logistics Distribution Center Location based on Fuzzy AHP , 2014 .

[47]  Shuo-Yan Chou,et al.  International distribution center selection from a foreign market perspective using a weighted fuzzy factor rating system , 2009, Expert Syst. Appl..

[48]  Majid Azizi.  Decision making for Raw material Procurement in Paper making factory , 2005 .

[49]  Eiichi Taniguchi,et al.  Optimal size and location planning of public logistics terminals , 1999 .

[50]  Felix T.S. Chan,et al.  Decision-making approach for the distribution centre location problem in a supply chain network using the fuzzy-based hierarchical concept , 2007 .

[51]  Harun Resit Yazgan,et al.  Selection of dispatching rules with fuzzy ANP approach , 2011 .

[52]  Jiuping Xu,et al.  A multi-objective chance-constrained network optimal model with random fuzzy coefficients and its application to logistics distribution center location problem , 2011, Fuzzy Optim. Decis. Mak..

[53]  Yan Zhang,et al.  Location Optimization Model of Regional Express Distribution Center , 2013 .

[54]  Ravi Shankar,et al.  Selection of logistics service provider: An analytic network process (ANP) approach , 2007 .

[55]  Qing Li,et al.  Enterprise information system project selection with regard to BOCR , 2008 .

[56]  Edvard Tijan,et al.  ICT EVOLUTION IN CONTAINER TERMINALS , 2010 .

[57]  Yasanur Kayikci,et al.  A conceptual model for intermodal freight logistics centre location decisions , 2010 .

[58]  S. K. Goyal,et al.  A multi-criteria decision making approach for location planning for urban distribution centers under uncertainty , 2011, Math. Comput. Model..

[59]  Catherine L. Ross,et al.  Atlanta: a mega logistics center in the Piedmont Atlantic Megaregion (PAM) , 2012 .

[60]  Michihiko Noritake,et al.  Optimum Allocation and Size of Seaports , 1990 .

[61]  Thomas L. Saaty,et al.  Fundamentals of the analytic network process — multiple networks with benefits, costs, opportunities and risks , 2004 .

[62]  Luis G. Vargas,et al.  Decision Making with the Analytic Network Process: Economic, Political, Social and Technological Applications with Benefits, Opportunities, Costs and Risks , 2013 .

[63]  Shinya Hanaoka,et al.  Application of Analytic Hierarchy Process for Location Analysis of Logistics Centers in Laos , 2012 .

[64]  Yan Chen,et al.  Evaluating the Selection of Logistics Centre Location Using Fuzzy MCDM Model Based on Entropy Weight , 2006, 2006 6th World Congress on Intelligent Control and Automation.

[65]  Ali Bozorgi-Amiri,et al.  A prioritization model for locating relief logistic centers using analytic hierarchy process with interval comparison matrix , 2015, Knowl. Based Syst..

[66]  Thomas L. Saaty.  APPLICATIONS OF ANALYTIC NETWORK PROCESS IN ENTERTAINMENT , 2009 .

[67]  Sai Ho Chung,et al.  A study of distribution center location based on the rough sets and interactive multi-objective fuzzy decision theory , 2011 .

[68]  Dimitrios A Tsamboulas,et al.  Freight village evaluation under uncertainty with public and private financing , 2003 .

[69]  Jenni Eckhardt,et al.  The Role of Intelligent Logistics Centres in a Multimodal and Cost-effective Transport System , 2012 .

[70]  Fenling Feng,et al.  Location Selection of Chinese Modern Railway Logistics Center Based on DEA-Bi-level Programming Model , 2013 .

[71]  Hans-Dietrich Haasis,et al.  Converting knowledge into sustainability performance of freight villages , 2013, Logist. Res..

[72]  Zuzana Svecova,et al.  Logistics centers location , 2006 .

[73]  J. Raudeliūnienė,et al.  Evaluation of Logistics Centres Establishment: External and Internal Factors , 2011 .