Central Distribution in Europe: A Multi‐Criteria Approach to Location Selection

Abstract

This paper describes a conceptual framework for developing new distribution structures. In real life decision‐making, optimal regions to locate a distribution center take into account both quantitative and qualitative factors. An adjusted kuehn‐Hamburger model is suggested to minimize transport and location costs and a Grid model is used as an alternative approach in case of missing data. The outcome is refined on quantitative and qualitative criteria by application of the Electre method. This framework is applied to a major telecom company's European distribution.