Determining criteria interaction and criteria priorities in the freight village location selection process: the experts' perspective in Turkey

Abstract

PurposeConsidering the contribution of freight villages (FVs) to the economy and sector, transportation cost advantage, environmental externalities, labor costs, employment, etc. criteria evaluation is important in selecting FV location. Environmental sustainability and social dimensions are becoming important criteria for companies in logistics. The purpose of the study is to determine/model the criteria interaction and also determine the criteria priorities in the FV location selection process. Meanwhile, the study aims to evaluate these criteria and present information to researchers and decision makers.Design/methodology/approachSix main criteria and 29 sub-criteria are selected from related literature. Decision making trial and evaluation laboratory (DEMATEL) method is used for determining/modeling the criteria interaction and sketching interaction diagram, and the Analytical Hierarchy Process (AHP) method is used for determining the criteria priorities. One/two-way pairwise compared main/sub-criteria views are obtained from 48 experts for calculations.Findings“Trade potential”, “transportation networks” and “economic factors” have the highest priorities, respectively, out of six main criteria, and they have the most powerful interactions that put these criteria to the center of decision process. Sub-criteria of “foreign trade potential”, “proximity to the port”, “market opportunities” and “proximity to the railway” out of 29 have a total 36.42% priority, more than one-third of the importance.Originality/valueCriteria are evaluated in FV location selection for FV sustainability using criteria interaction diagrams, affecting/being affected by the level of each criterion and their priorities. This study shows a hybrid derivation from DEMATEL-AHP usage methods together. High-volumed and qualified/experienced expert group judgments in Turkey are evaluated.