Evaluation of logistics centers in terms of sustainability via MCDM methods

Nuh Keleş and Mehmet Pekkaya

Journal of Advances in Management Research, 2023, vol. 20, issue 2, 291-309

Abstract: Purpose - The purpose of the study is the evaluation of choosing the determined logistics centers’ (LCs’) locations via Multi-Criteria Decision-Making (MCDM) methods. Design/methodology/approach - Since there is more than one criterion in the evaluation of LC location, MCDM methods are used. The Entropy and CRiteria Importance Through Intercriteria Correlation (CRITIC) methods are used to determine the main criteria and sub-criteria weights. The Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) method is used for ranking and evaluating 12 alternatives in Turkey and sensitivity analysis according to the threshold values of criteria and preference functions. Findings - Possible LC alternatives in Turkey and 12 locations ranked. Changing the criteria weights at a significant level did not affect the ranking results much. In the sensitivity analysis of the criteria for which market data could not be obtained (scored by the experts) it is found that they either made no difference or made little difference in the ranking of the alternatives. Practical implications - In terms of sustainability, economic factors along with environmental and social dimensions are important criteria for logistics companies and LC. The use of these variables in the LC location selection makes a difference. Originality/value - This study focuses on LC location selection, via PROMETHEE with evaluated preference functions for criteria, taking into account nine scenarios that use variable criteria weight calculated via different MCDM methods. The results are evaluated by using sensitivity analysis and taking into account the sustainability aspect for LC. Multiple methods have been used effectively together in a way that support each other.

Keywords: Logistics center location; CRITIC; Entropy; PROMETHEE; Sensitivity analysis (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jamrpp:jamr-04-2022-0087

DOI: 10.1108/JAMR-04-2022-0087

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