Impact analysis of logistics facility relocation using the analytic hierarchy process (AHP)

Abstract

Facility relocation has a long-term impact on business competitiveness in terms of cost efficiency, service level, and accessibility to marketplace. This paper investigates the impacts of relocating a company's logistics facility. Specifically, a case study of a logistics service provider for a bank, whose services include cash pick-up and deliveries, and ATM refill, is conducted. Some of the major logistics issues caused by the relocation of the company's distribution center are identified through process observation and in-depth interview. The analytic hierarchy process (AHP) is implemented to evaluate and rank the importance of the logistics issues according to the needs and requirements of the company's policy makers. Four criteria considered in the AHP include cost, responsiveness, reliability, and utilization. Results show that, from the company's perspective, the development of logistics key performance indices is given the highest priority, followed by improvement of internal process, vehicle routing, network design, and inventory management, respectively.

Analytic Hierarchy Process and Supply Chain Management: A Bibliometric Study

“…The topics identified have undergone supply chain and distribution network, warehouse location and customer service with the AHP application combined with Mixed Integer Linear Programming [41]; Genetic Algorithm [45], [46] and [49]; Goal Programming [51], as can be observed in Table 5. A drill down of the citation network was performed, having identified some publications as successors with the following topics: supplier selection, distribution center network, supply chain integration and collaborative planning, forecasting and replenishment [52], [53], [54] and [55].…”

Contributions to Substantiating the Decision to Relocate an Industrial Business

“…Subsequently, concluded that because of the availability of data, the impact of infrastructure on regional development has become the basic criterion [6]. In 2013, other researchers argued that the effect of infrastructure on economic development varies between industrial groups and modes of transport [7].…”

A Comparative Study of the Capability of Alternative Mixed Integer Programming Formulations

“…Among the MCDM approaches, the most used one is AHP because of its advantages over others (Wang, Chang 2007;Opasanon, Lertsanti 2013). As Saaty (1980) indicates, the most noted advantages of the AHP approach are; its ability to handle the inconsistencies in managerial judgments (perceptions); and its user friendly nature where users may directly input judgment data without any previous mathematical calculations.…”