ELECTRE I Based Relevance Decision-Makers Feedback to the Location Selection of Distribution Centers

Abstract

The location selection of distribution centers is one of the important strategies to optimize the logistics system. To solve this problem, under certain environment, this paper presents a new multicriteria decision-making method based on ELECTRE I. The proposed method helps decision-makers to select the best location from a given set of locations for implementing. After having identified decision-makers, the criteria, and the set of locations, the factors influencing the selection are analyzed in order to identify the best location. A sensitivity analysis is then performed to determine the influence of criteria weights on the selection decision. The strength of the proposed method is to incorporate decision-makers’ preferences into the decision-making process. In addition, the proposed method considers both quantitative and qualitative criteria. Finally, the selected solution is validated by both tests of concordance and discordance simultaneously. A case study is provided to illustrate the proposed method.