Application of Analytic Hierarchy Process for Fulfillment Warehouse Location Selection
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Abstract
The objective of this research is to apply the analytic hierarchy process to select the best fulfillment warehouse location for a 4PL (Fourth Party Logistics Service Provider) company that is seeking a new warehouse to support the growth of its business. The pairwise comparison judgments were collected from the company’s management team by using a questionnaire to consider five location candidates in the Bangkok Metropolis Region and Vicinity. In the study, three main criteria and nine sub-criteria related to the facilities, transportation, market, and workforce were analyzed. The results show that the proposed model is able to determine the importance weights of criteria and sub-criteria for the fulfillment warehouse location selection. The highest priority criterion is transportation (41.7%). The subsequent priorities were assigned to facilities (37.6%) and market and workforce (20.7%) when selecting a fulfillment warehouse location according to the obtained weights. Finally, fulfillment warehouse location 2 (24.6%) is the first priority for location, followed by location 1, location 5, location 4, and location 3, respectively.
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