An AHP-based framework for logistics operations in distribution centres

In retail distribution centres (DCs), the handling and storage of products typically represent the largest share of operational costs and its design depends on a balance between supply and demand processes. As hundreds of options are possible, it is a challenge to plan and run these operations effectively. The objective of this research is to propose a framework for designing operations in DCs based on a joint study of three elements: distribution strategy, internal activities, and the characteristics of the distribution operations. The methodology is developed based on theory-building research using three case studies. The data collection was performed by three top managers at large logistics providers (LPs). The analytic hierarchy process (AHP) method was applied, and the framework was validated by the LPs. This framework was then applied to a sports fashion retail operation and was reported to enable the decision-making process regarding operations at DCs, creating scenarios for evaluation.

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