Warehouse location selection with TOPSIS group decision-making under different expert priority allocations

Lanndon Ocampo; Gianne Jean Genimelo; Jerome Lariosa; Raul Guinitaran; Philip John Borromeo; Maria Elena Aparente; Teresita Capin; Miriam Bongo

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Warehouse location selection with TOPSIS group decision-making under different expert priority allocations

Engineering Management in Production and Services

Volume 12 (2020): Numero 4 (December 2020)

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Pubblicato online: 31 dic 2020

Pagine: 22 - 39

Ricevuto: 18 apr 2020

Accettato: 25 nov 2020

DOI: https://doi.org/10.2478/emj-2020-0025

Parole chiave
warehouse, location decision, multiple criteria decision-making, TOPSIS

© 2020 Lanndon Ocampo et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Case for the problem of the warehouse location selection

Source	Location selection criteria
Özcan et al. (2011)	unit price; stock holding capacity; average distance to main supplier; average distance to shops; movement flexibility
Dey et al. (2017)	availability of markets; transportation facility; space availability; costs
Demirel et al. (2010)	costs; labour characteristics; infrastructure; markets; macro-environment
García et al. (2014)	accessibility to the area; distance; costs; security of the region; local acceptance of the company; company needs
Alberto (2000)	environmental aspects; costs; quality of living; local incentives; time reliability provided to customers; response flexibility to customers’ demands; integration with customers
Chan et al. (2007)	cost expected; traffic access; market opportunity; quality of living; local incentives
Dogan (2012)	quality of labour; quality of suppliers; demographics; geographical location; quality of life; financial efficiency; quality of transportation; government efficiency; quality and infrastructure; regulatory; social and cultural factors; economic performance
MacCarthy and Atthrirawong (2003)	Costs; labour characteristics; infrastructure; proximity to suppliers; proximity to markets/customers; proximity to parent company's facilities; proximity to competition; quality of life; legal and regulatory framework; economic factors; government and political factors; social and cultural factors; characteristics of a specific location
Roh et al. (2013)	location; logistics; national stability; cost; cooperation
Melachrinoudis and Min (2000)	cost; traffic access; local incentives
Kuo (2011)	port rate; import/export volume; location resistance; extension transportation convenience; trans-shipment time; one-stop service; information abilities; port and warehouse facilities; port operation system; density of shipping line
Rao et al. (2015)	price of acquiring land; upside delivery flexibility; transportation conditions; service level; human resources condition; environmental protection level; impact on ecological landscape; natural conditions; public facilities condition; security; comply with sustainability laws and regulations; impact on nearby residents; impact on traffic congestion
Colson and Dorigo (2004)	surface of storage; volume of storage; general storage; storage of dangerous items; temperature-controlled storage; separated storage areas; heating; humidity-controlled environment; ventilation-controlled environment; insulated roof and walls; office(s) present on site; distance from nearest motorway; connection to rail; connection to waterways; certified to ISO 9001/9002; certified to SQAS; certified to HACCP; daily opening hours; customs on site; bonded warehouse; feigned warehouse; simple inventory recording; real inventory management; use of bar codes or tags; interfaced computer system; RF communications; (Re-)packaging; order management; transport/distribution; only for receipts and issues; mixed with trans-shipment for third parties; forklift trucks-electric; forklift trucks-gas; forklift trucks-diesel/petrol; tractors for terminal; height stacking; open loading/unloading docks; covered loading/unloading docks; dock levellers; automatic docks; and docks for swap bodies/semi-trailers

Weighted normalised decision matrices

Criteria	S1		S2		S3
Criteria	Talamban	Compostela	Talamban	Compostela	Talamban	Compostela
C1	0.0616	0.0443	0.0614	0.0446	0.0615	0.0444
C2	0.0389	0.0540	0.0390	0.0537	0.0389	0.0538
C3	0.0267	0.0371	0.0266	0.0366	0.0267	0.0369
C4	0.0671	0.0273	0.0652	0.0298	0.0659	0.0293
C5	0.0550	0.0384	0.0538	0.0380	0.0543	0.0382
C6	0.0421	0.0294	0.0418	0.0295	0.0419	0.0295
C7	0.0398	0.0461	0.0398	0.0458	0.0397	0.0459
C8	0.0437	0.0448	0.0435	0.0451	0.0437	0.0449
C9	0.0092	0.0092	0.0097	0.0097	0.0094	0.0094
C10	0.0066	0.0066	0.0068	0.0068	0.0067	0.0067
C11	0.0254	0.0254	0.0256	0.0256	0.0255	0.0255
C12	0.0432	0.0432	0.0426	0.0426	0.0429	0.0429
C13	0.0318	0.0318	0.0325	0.0325	0.0322	0.0322
C14	0.0108	0.0217	0.0112	0.0223	0.0110	0.0221
C15	0.0281	0.0406	0.0274	0.0409	0.0280	0.0407
C16	0.0358	0.0444	0.0364	0.0439	0.0362	0.0439
C17	0.0327	0.0560	0.0324	0.0554	0.0326	0.0557
C18	0.0223	0.0223	0.0232	0.0232	0.0228	0.0228
C19	0.0139	0.0151	0.0144	0.0157	0.0141	0.0154
C20	0.0187	0.0158	0.0188	0.0164	0.0186	0.0162
C21	0.0067	0.0067	0.0066	0.0066	0.0067	0.0067
C22	0.0365	0.0365	0.0360	0.0360	0.0362	0.0362

Rating scale for each criterion

Scale	Equivalent rating score
Very important	10
Fairly important	9
Important	7
Slightly important	5
Least important	3
Not important at all	1
Intermediate values between the two adjacent judgments	2, 4, 6, 8

Criteria weights for S1, S2, and S3

Criteria	President	Admin Manager	Senior Manager	Assistant Manager	Weights for S1	Weights for S2	Weights for S3
C1	10	10	10	10	0.0758	0.0759	0.0759
C2	9	8	9	9	0.0665	0.0663	0.0664
C3	6	5	7	6	0.0457	0.0453	0.0455
C4	9	9	10	10	0.0724	0.0717	0.0721
C5	8	8	9	10	0.0670	0.0659	0.0664
C6	7	6	7	7	0.0514	0.0512	0.0512
C7	8	8	7	9	0.0609	0.0607	0.0607
C8	8	9	7	9	0.0626	0.0627	0.0626
C9	3	1	2	1	0.0130	0.0137	0.0133
C10	1	2	1	1	0.0093	0.0095	0.0095
C11	5	5	4	5	0.0360	0.0362	0.0361
C12	7	8	8	9	0.0612	0.0602	0.0607
C13	7	6	6	5	0.0450	0.0460	0.0455
C14	4	3	4	2	0.0242	0.0250	0.0247
C15	6	7	6	7	0.0494	0.0492	0.0493
C16	8	7	7	8	0.0570	0.0570	0.0569
C17	8	8	9	9	0.0648	0.0641	0.0645
C18	5	5	4	3	0.0316	0.0328	0.0323
C19	4	2	3	2	0.0205	0.0213	0.0209
C20	4	3	3	3	0.0245	0.0250	0.0247
C21	1	1	2	1	0.0095	0.0093	0.0095
C22	6	7	6	8	0.0516	0.0509	0.0512

Decision matrix

Criteria	President		Administration Manager		Senior Manager		Assistant Manager
Criteria	Talamban	Compostela	Talamban	Compostela	Talamban	Compostela	Talamban	Compostela
C1	4	3	5	4	5	3	4	3
C2	3	4	4	5	3	5	3	4
C3	3	4	4	5	3	5	3	4
C4	9	1	1	9	9	1	8	1
C5	9	7	9	6	9	7	10	6
C6	9	7	9	6	9	7	10	6
C7	9	10	8	9	8	10	7	8
C8	9	10	9	10	10	8	9	10
C9	1	1	1	1	1	1	1	1
C10	1	1	1	1	1	1	1	1
C11	9	9	9	9	9	9	10	10
C12	9	9	9	9	9	9	10	10
C13	10	10	9	9	9	9	10	10
C14	5	9	4	9	5	9	4	9
C15	5	9	4	9	9	5	4	9
C16	8	9	8	9	8	7	4	9
C17	4	7	4	7	5	7	4	8
C18	8	8	8	8	8	8	9	9
C19	9	9	8	9	7	9	9	9
C20	10	7	1	6	10	7	9	6
C21	10	10	10	10	10	10	9	9
C22	10	10	9	9	9	9	10	10

Normalised decision matrices

Criteria	S1		S2		S3
Criteria	Talamban	Compostela	Talamban	Compostela	Talamban	Compostela
C1	0.8118	0.5840	0.8090	0.5878	0.8107	0.5855
C2	0.5840	0.8118	0.5878	0.8090	0.5855	0.8107
C3	0.5840	0.8118	0.5878	0.8090	0.5855	0.8107
C4	0.9264	0.3766	0.9096	0.4154	0.9138	0.4061
C5	0.8200	0.5723	0.8168	0.5769	0.8182	0.5749
C6	0.8200	0.5723	0.8168	0.5769	0.8182	0.5749
C7	0.6534	0.7570	0.6555	0.7552	0.6542	0.7564
C8	0.6985	0.7156	0.6949	0.7192	0.6976	0.7165
C9	0.7071	0.7071	0.7071	0.7071	0.7071	0.7071
C10	0.7071	0.7071	0.7071	0.7071	0.7071	0.7071
C11	0.7071	0.7071	0.7071	0.7071	0.7071	0.7071
C12	0.7071	0.7071	0.7071	0.7071	0.7071	0.7071
C13	0.7071	0.7071	0.7071	0.7071	0.7071	0.7071
C14	0.4459	0.8951	0.4485	0.8938	0.4472	0.8944
C15	0.5692	0.8222	0.5562	0.8310	0.5665	0.8240
C16	0.6276	0.7786	0.6388	0.7694	0.6357	0.7719
C17	0.5043	0.8635	0.5048	0.8632	0.5057	0.8627
C18	0.7071	0.7071	0.7071	0.7071	0.7071	0.7071
C19	0.6761	0.7368	0.6775	0.7355	0.6757	0.7372
C20	0.7640	0.6452	0.7528	0.6583	0.7557	0.6549
C21	0.7071	0.7071	0.7071	0.7071	0.7071	0.7071
C22	0.7071	0.7071	0.7071	0.7071	0.7071	0.7071

The separation measures and the relative closeness coefficients

	S1		S2		S3
	Talamban	Compostela	Talamban	Compostela	Talamban	Compostela
	0.0351	0.0486	0.0348	0.0444	0.0347	0.0457
	0.0486	0.0351	0.0444	0.0348	0.0457	0.0347
	0.5808	0.4192	0.5607	0.4393	0.5681	0.4319
Rank	1	2	1	2	1	2

Importance weights of decision-makers based on S1, S2, S3

Decision-makers	Priority weights of decision-makers based on
Decision-makers	S1	S2	S3
President	0.2258	0.2903	0.2500
Administration Manager	0.2258	0.2581	0.2500
Senior Manager	0.2581	0.2258	0.2500
Assistant Manager	0.2903	0.2258	0.2500

The set of criteria for the case of warehouse location selection

Code	Criteria	Description
C1	Unit price	Refers to the unit price per square metre of land
C2	Transportation cost	Relates to costs associated with the transportation facilities, and alternative transportation types
C3	Logistics cost	Relates to the costs of transferring products from the warehouse to their destinations
C4	Proximity to the leading supplier	The distance from the warehouse to the main supplier
C5	Proximity to customers	The distance from the warehouse to the customers
C6	Availability of customers	Number of customers in the area of the warehouse
C7	Space availability	Adequate space should be available for the warehouse
C8	Accessibility to the road	Road infrastructure considering the trucking service and road conditions
C9	Accessibility to the seaport	Considers accessibility to the seaport and distance from the warehouse
C10	Accessibility to the airport	Considers accessibility to the airport and distance from the warehouse
C11	Existence of modes of transportation	Availability of different transportation types in the location
C12	Quality and reliability of modes of transportation	Transportation service between the customer, supplier, and the warehouse
C13	Telecommunication systems	Communication facilities and technologies of the warehouse
C14	Zoning and construction plan	Different development plans, implementations, and arrangements of local administrations at alternative locations
C15	Industrial regulations laws	Various laws and arrangements at the alternative locations
C16	Security of region	Refers to the rate of loss by robbery, presence of organised crime, security personnel, and security systems
C17	Traffic access	Refers to the capacity of handling a large volume of traffic and providing ease of access to transportation infrastructure and traffic-related services
C18	Political stability	Relates to political change or stable political decisions
C19	Social stability	Risk of protests against the government
C20	Economic stability	A significant level of output growth and low and stable inflation
C21	Impact on ecological landscape	Maintains or improves the original landscape without damaging the city's image
C22	Condition of public facilities	Requires public goods, such as roads, communication, power supply, and water to function properly

Rating scale for the cost criteria

Scale	Rating
Very Poor (VP)	10
Poor (P)	9
Medium Poor (MP)	7
Fair (F)	5
Good (G)	3
Very Good (VG)	1
Intermediate values between the two adjacent judgments	8, 6, 4, 2

Rating scale for the benefit criteria

Scale	Rating
Poor (P)	1
Medium Poor (MP)	3
Fair (F)	5
Medium Good (MG)	7
Good (G)	9
Very Good (VG)	10
Intermediate values between the two adjacent judgments	2, 4, 6, 8

V+ and V− for S1, S2, and S3

Criteria	S1		S2		S3
Criteria
C1	0.0443	0.0616	0.0446	0.0614	0.0444	0.0615
C2	0.0389	0.0540	0.0390	0.0537	0.0389	0.0538
C3	0.0267	0.0371	0.0266	0.0366	0.0267	0.0369
C4	0.0671	0.0273	0.0652	0.0298	0.0659	0.0293
C5	0.0550	0.0384	0.0538	0.0380	0.0543	0.0382
C6	0.0421	0.0294	0.0418	0.0295	0.0419	0.0295
C7	0.0461	0.0398	0.0458	0.0398	0.0459	0.0397
C8	0.0448	0.0437	0.0451	0.0435	0.0449	0.0437
C9	0.0092	0.0092	0.0097	0.0097	0.0094	0.0094
C10	0.0066	0.0066	0.0068	0.0068	0.0067	0.0067
C11	0.0254	0.0254	0.0256	0.0256	0.0255	0.0255
C12	0.0432	0.0432	0.0426	0.0426	0.0429	0.0429
C13	0.0318	0.0318	0.0325	0.0325	0.0322	0.0322
C14	0.0217	0.0108	0.0223	0.0112	0.0221	0.0110
C15	0.0406	0.0281	0.0409	0.0274	0.0407	0.0280
C16	0.0444	0.0358	0.0439	0.0364	0.0439	0.0362
C17	0.0560	0.0327	0.0554	0.0324	0.0557	0.0326
C18	0.0223	0.0223	0.0232	0.0232	0.0228	0.0228
C19	0.0151	0.0139	0.0157	0.0144	0.0154	0.0141
C20	0.0187	0.0158	0.0188	0.0164	0.0186	0.0162
C21	0.0067	0.0067	0.0066	0.0066	0.0067	0.0067
C22	0.0365	0.0365	0.0360	0.0360	0.0362	0.0362

Aggregate decision matrices

Criteria	S1		S2		S3
Criteria	Talamban	Compostela	Talamban	Compostela	Talamban	Compostela
C1	1.1210	0.8065	1.1210	0.8145	1.1250	0.8125
C2	0.8065	1.1210	0.8145	1.1210	0.8125	1.1250
C3	0.8065	1.1210	0.8145	1.1210	0.8125	1.1250
C4	1.7258	0.7016	1.6774	0.7661	1.6875	0.7500
C5	2.3226	1.6210	2.3065	1.6290	2.3125	1.6250
C6	2.3226	1.6210	2.3065	1.6290	2.3125	1.6250
C7	1.9839	2.2984	2.0161	2.3226	2.0000	2.3125
C8	2.3145	2.3710	2.3065	2.3871	2.3125	2.3750
C9	0.2500	0.2500	0.2500	0.2500	0.2500	0.2500
C10	0.2500	0.2500	0.2500	0.2500	0.2500	0.2500
C11	2.3226	2.3226	2.3065	2.3065	2.3125	2.3125
C12	2.3226	2.3226	2.3065	2.3065	2.3125	2.3125
C13	2.3790	2.3790	2.3790	2.3790	2.3750	2.3750
C14	1.1210	2.2500	1.1290	2.2500	1.1250	2.2500
C15	1.3790	1.9919	1.3548	2.0242	1.3750	2.0000
C16	1.7097	2.1210	1.7742	2.1371	1.7500	2.1250
C17	1.0645	1.8226	1.0565	1.8065	1.0625	1.8125
C18	2.0726	2.0726	2.0565	2.0565	2.0625	2.0625
C19	2.0645	2.2500	2.0726	2.2500	2.0625	2.2500
C20	1.9194	1.6210	1.8629	1.6290	1.8750	1.6250
C21	2.4274	2.4274	2.4435	2.4435	2.4375	2.4375
C22	2.3790	2.3790	2.3790	2.3790	2.3750	2.3750

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Warehouse location selection with TOPSIS group decision-making under different expert priority allocations

Pubblicato online: 31 dic 2020

Pagine: 22 - 39

Ricevuto: 18 apr 2020

Accettato: 25 nov 2020

DOI: https://doi.org/10.2478/emj-2020-0025

Parole chiavewarehouse, location decision, multiple criteria decision-making, TOPSIS

© 2020 Lanndon Ocampo et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Fig. 1

Weighted normalised decision matrices

Rating scale for each criterion

Criteria weights for S1, S2, and S3

Decision matrix

Normalised decision matrices

The separation measures and the relative closeness coefficients

Importance weights of decision-makers based on S1, S2, S3

The set of criteria for the case of warehouse location selection

Rating scale for the cost criteria

Rating scale for the benefit criteria

V+ and V− for S1, S2, and S3

Aggregate decision matrices

Parole chiave
warehouse, location decision, multiple criteria decision-making, TOPSIS