A hybrid fuzzy approach to facility location decision-making

Abstract

Facility location decisions play a critical role in the strategic design of supply chain networks. Selection of facility locations among alternative locations is a decision problem which includes quantitative and qualitative criteria simultaneously. This paper discusses facility location problem with focus on logistics distribution center in Novi Sad area, Serbia, micro-location selection. Methodological fuzzy TOPSIS ranking method is proposed and examined and it is shown how such a model can be of assistance in analyzing a multi criteria decision-making problem when the information available is vague and subjective. The experimental results could be compared with other official results of the feasibility study of the distribution center (DC) located in Novi Sad area. Compared to the official study, which does not show a methodological basis, this research gets the results similar to the empirical results in an entirely exact way. © 2013 Springer-Verlag.