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Revista Facultad de Ingeniería Universidad de Antioquia

Print version ISSN 0120-6230

Abstract

SZEREMETA-SPAK, Marcia Danieli  and  COLMENERO, João Carlos. A two-stage decision support model for a retail distribution center location. Rev.fac.ing.univ. Antioquia [online]. 2015, n.74, pp.177-187. ISSN 0120-6230.

This paper proposes a model to support the decision-making process of selecting the location of a distribution center for the retail sector. The model was structured in two stages to consider objective and subjective criteria (multicriteria) for the decision-making process. In the first stage, a nonlinear programming model was used to establish a reference site in the region under analysis and identify five cities near that location. The second stage consisted of building a hierarchic structure for making decisions based on criteria and sub-criteria relevant to the process of deciding the location of a distribution center, and applying the Analytic Hierarchy Process (AHP) multicriteria method for all five previously selected candidate cities. The model was used to define the location of a distribution center for a furniture and appliance retailer in the state of Paraná, Brazil. The results show that the criteria transportation and market have the most influence in the decision-making process, and that the best alternative for the distribution center was the city of Arapongas (PR). The methodology proved to be efficient in the decision analysis presented herein.

Keywords : Decision making; location problem; distribution center; Analytic Hierarchy Process; nonlinear programming.

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