Journal of Korean Society of Industrial and Systems Engineering (산업경영시스템학회지)

Society of Korea Industrial and System Engineering (한국산업경영시스템학회)
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Location Selection of Distribution Centers by Using Grey Relational Analysis

GRA를 이용한 물류센터 입지선정문제

  • Woo, Taehee (Department of Industrial Systems Management, Seoil University) ;
  • Bach, Seung (College of Business Administration, California State University)
  • 우태희 (서일대학교 산업시스템경영과) ;
  • Received : 2015.05.23
  • Accepted : 2015.06.05
  • Published : 2015.06.30
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Abstract

Location selection of distribution centers is a crucial task for logistics operators and key decision makers of an organization. This is a multi-criteria decision making (MCDM) process which includes both quantitative and qualitative criteria. In order to propose an optimized location selection model, this research suggests a hierarchical group of evaluation criteria : 5 major criteria with 15 sub-criteria. The MCDM approach presented in this research, by integrating Grey Relational Analysis (GRA) with Analytic Hierarchy Process (AHP), tends to rectify the overall quality and uncertainty of the values of evaluation criteria. An example of a location selection case in Korea is illustrated in this study to show the effectiveness of this method.

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References

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