A STOCHASTIC MULTI-CRITERIA DECISION-MAKING ANALYSIS FOR A WAREHOUSE LOCATION SELECTION PROBLEM: A CASE STUDY

The problem of a warehouse location selecting which has a significant impact on logistics costs is an important decision problem based on the best choice of alternatives under multiple conflicting criteria. Multiple-criteria decision-making (MCDM) methods are used as a solution approach for the decision problems including several criteria. In this study, a new stochastic multi-criteria decision-making approach has been developed to solve the warehouse location selection problem (WLSP) in the stochastic environment which contains uncertain situations. In the proposed approach, the SAHP (Stochastic Analytic Hierarchy Process) method was used to calculate the weight of criteria, and the alternatives were ranked and evaluated by fuzzy MOORA (MultiObjective Optimization by Ratio Analysis). The proposed approach is applied to warehouse selection problem of a supermarket chain located in Turkey. The results of the research indicated that A2 is the best alternative. It can be said that the proposed method can be applied to the real life problems because it found a suitable solution to the problem.