Warehouse location selection by fuzzy multi criteria decision making methodologies based on subjective and objective criteria
Abstract This paper proposes three new extended fuzzy multi criteria decision making methodologies capable of handling subjective and objective factors for the evaluation and selection of warehouse location. A warehouse location selection problem involves both subjective as well as objective criteria. The concept of fuzzy set theory is integrated with the Technique for Order Preference by Similarity to the Ideal Solution (TOPSIS) Simple Additive Weight (SAW) and Multi Objective Optimization on the basis of Ratio Analysis (MOORA) methods to assess subjective criteria in terms of subjective factor measures. A classical normalization technique is employed to assess the objective criteria in terms of objective factor measures. Subjective factor measures and objective factor measures are integrated by the Brown and Gibson model to calculate the warehouse location selection index. The proposed methods are illustrated with two examples of warehouse location selection. A comparative study of the results and a sensitivity analysis are carried out. The study finds that the proposed methodologies are useful and effective fuzzy multi criteria decision making tools for the evaluation and selection of warehouse location in a supply chain.