Location planning of urban distribution center under uncertainty: A case study of Yogyakarta Special Region Province, Indonesia

Abstract

Purpose: The paper aims at proposing a framework and demonstrating application of the framework to evaluate and select the appropriate location for Urban Distribution Center (UDC) in Yogyakarta Special Region Province, Indonesia.Design/methodology/approach: The proposed framework consists two steps of analysis. First, spatial analysis to generate alternative locations using weighted Geographical Information System (GIS) data; second, multi-criteria decision-making to select of the best location. Multi-criteria decision-making method based on fuzzy logic was applied to deal with uncertainty. Accessibility, security, connectivity of multi-modal transport, costs, environmental impact, proximity to customers, proximity to suppliers, resource availability, expansion possibility, service quality, are taken as the decision criteria.Findings: The proposed framework has been able to explain the unsuitability of Jogja Inland Port. Results further indicate that Jogja Inland Port appears to be the worst alternative, whereas the best location for UDC is located in Berbah (Sleman district) where a joint warehouse managed by a group of private companies has existed.Research limitations/implications: As the study has involved the government, experts, and practitioners, future research could engage local residents as decision makers to refine the results, as various stakeholders may have different preferences.Practical implications: From a practical point of view, the present study provides insights to the government to the application of combined approach in determining UDC location as well as evaluation toward the acceptability of Jogja Inland Port.Social implications: The unsuccessful establishment of Jogja Inland Port implies that associated stakeholders, i.e., government, practitioners, residents, should be taken into consideration when planning Urban Distribution Center (UDC) establishment.Originality/value: The research proposes a framework to evaluate and select the appropriate location for Urban Distribution Center (UDC) through combined approach of spatial analysis and multi-criteria decision-making which involves relevant stakeholders.

Development and Location of Logistics Centres: A Systematic Review of Literature

“…Apart from the location of logistics centres, environmental issues are of high importance. Sopha et al (2018) maintain that the growth of transport activity has impacted negatively city residents and environment in terms of traffic congestion, air and noise pollution, as well as road damage. Agrebi et al (2015) have define six most important points and reasons of urban logistics:…”

City logistics challenges and innovative solutions in developed and developing economies: A systematic literature review

“…5,29,40 Developing Countries 30% Developed Countries 70% 41,42 Some studies examined the shipping operation zone, [43][44][45][46][47][48][49][50][51][52] urban transportation network, [53][54][55][56][57][58] and distribution centers. [59][60][61] Meanwhile, very few studies addressed vehicle routing, 62,63 traffic management, 64 and delivery technology. 65 Figure 5 shows the countries that contributed to the city logistics literature.…”

“…Studies in developing countries have focused on infrastructure to overcome challenges relating to city logistics and urban transportation 41,42. Some studies examined the shipping operation zone,[43][44][45][46][47][48][49][50][51][52] urban transportation network,[53][54][55][56][57][58] and distribution centers [59][60][61]. Meanwhile, very few studies addressed vehicle routing,62,63 traffic management,64 and delivery technology 65.…”

Decision model using hierarchical fuzzy TOPSIS: Towards improving decision making in food waste management

“…The linguistic variables are converted into fuzzy number in crisp value ( (Chen, 2000;Ashrafzadeh et al, 2012;Chu & Lin, 2009;Kahraman et al, 2015). Linguistic variable (or value) is a subjective judgement in quantitative expressions by decision maker where the values is mention in statement instead of number (Chen, 2000;Sopha et al, 2018;Zadeh, 1975). Fuzzy concept is used when assessment or decision usually mentioned with unclear and definite meaning.…”

“…Thus, Hierarchical Fuzzy TOPSIS can manage the ambiguities in multi-criteria problem to yield precise, consistent, and reliable results. It has been applied in different application domains, such as supplier selection (Najafi et al, 2016;Roshandel et al, 2013), earthquake damage (Ranjbar & Nekooie, 2018), risk evaluation (Liu et al, 2018), location planning (Sopha et al, 2018), and road safety assessment (Bao et al, 2012).…”