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http://dx.doi.org/10.11627/jkise.2015.38.2.82

Location Selection of Distribution Centers by Using Grey Relational Analysis  

Woo, Taehee (Department of Industrial Systems Management, Seoil University)
Bach, Seung (College of Business Administration, California State University)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.38, no.2, 2015 , pp. 82-90 More about this Journal
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.
Keywords
GRA; AHP; MCDM(Multi-Criteria Decision Making); Location selection; Distribution Center;
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