AN APPLICATION OF THE ANALYTIC HIERARCHY PROCESS (AHP) FOR LOCATING A DISTRIBUTION CENTER

Summary: This article describes an application of the AHP to a logistics problem of site selection. The site selection problem is considered one of the most important strategic decisions taken by organizations. It involves a great number of aspects related to investments and operational costs, directly or indirectly related to the company’s operation, not to mention social related aspects. The proposed methodology was applied for locating a distribution center of non-durable consumer goods in the Sao Paulo Metropolitan Region, Brazil, counting on about 18 million inhabitants. It was developed considering all the challenges involving the site selection problem, based on a proposed checklist that contemplates nearly 100 parameters.