A Spherical Fuzzy Analytic Hierarchy Process (SF-AHP) and Combined Compromise Solution (CoCoSo) Algorithm in Distribution Center Location Selection: A Case Study in Agricultural Supply Chain

Abstract

Logistics is an important service sector, contributing to improving the competitiveness of the economy. Therefore, along with increasing the application of technology and effective business models, it is necessary to increase the connectivity of the infrastructure systems of industrial parks, roads, and seaports of regions and the country. Over the past decades, Vietnamese businesses have been step-by-step going through many stages from production, packaging, quality, hygiene, and safety to grasping new stages in the domestic and global value chain. In many industries, businesses are increasing the content of their own designs, exploiting brands, and approaching consumption networks in the target market. The role of the distribution center is becoming more and more important in ensuring a seamless and flawless supply chain. In particular, the distribution center is the most sensitive contact point between supply and demand in each enterprise. Therefore, the key mission of a distribution center is to reconcile supply and demand requirements. Distribution center location selection problems usually involve multiple quantitative and qualitative criteria that the decision maker must take into account for assessing the symmetrical impact of the criteria to reach the most accurate result. In this study, the authors propose a hybrid MCDM model based on Spherical Fuzzy Analytic Hierarchy Process (SF-AHP) and Combined Compromise Solution (CoCoSo) Algorithm to support the distribution location selection problem of perishable agricultural products. The proposed model is then applied to the numerical case study of the sweet potato product of the Mekong Delta region of Vietnam to demonstrate the feasibility of the model. The contribution of this research is to propose an MCDM model for improving the efficiency of the agricultural supply chain through selecting a location distribution center. This proposed model can be applied to the agricultural supply chain around the world.