A multi-criteria decision making approach based on fuzzy theory and fuzzy preference relations for urban distribution centers' location selection under uncertain environments

Abstract

Location selection of Urban Distribution Centers (UDC) is crucial in the design of efficient logistics systems. Indeed, optimum UDC location plays a vital role in saving distribution costs and minimizing traffic congestion arising from freight movement. In this paper, we suggest a Multi-Criteria Decision Making (MCDM) approach to solve the Urban Distribution Center location /allocation problem under uncertain environment. The proposed approach involves identification of possible locations with the aim of selecting the smartest location for implementing an UDC. The ratings and the weight of each alternative and criterion are described by linguistic variables which can be expressed in triangular fuzzy numbers. The final evaluation value of each UDC location is also expressed using fuzzy logic theory. After calculating the difference of the final evaluation value between each pair of UDC location, a fuzzy preference relation matrix is constructed to show the degree of preferences of one plant location over another. After that, a smart ranking procedure is anticipated to determine the ranking order of all alternative locations. Finally, a numerical application is presented to illustrate the performance of the proposed approach.