Multi-Criteria Decision Making for Logistics Center Location Optimization

Optimising the placement of logistics centres is a complex task that must reconcile economic, environmental and social objectives. Multi-Criteria Decision Making (MCDM) techniques provide structured frameworks to evaluate alternative sites by integrating quantitative data—such as transport costs, infrastructure availability and population density—with qualitative factors, including policy priorities and stakeholder preferences. The typical process involves identifying relevant criteria, assigning weights to reflect their relative importance, and applying mathematical models to rank potential locations. Advances in fuzzy logic enable the explicit treatment of uncertainty and expert judgement, while geographic information systems (GIS) facilitate spatial analysis of network connectivity. The resulting decisions support supply-chain resilience, reduced emissions and improved customer service, making MCDM an indispensable tool for strategic logistics planning around the globe.

Research from Nature Portfolio

Recent work has introduced a hybrid subjective–objective framework for assessing distribution centre locations. In this approach, expert-driven weightings are combined with data-driven methods to capture both stakeholder priorities and empirical performance. Techniques such as Stepwise Weight Assessment Ratio Analysis II and Method based on the Removal Effects of Criteria are used to derive subjective and objective weights respectively. These weights feed into an aggregated scoring system, enhanced by simulation and assignment modelling, to deliver a robust ranking of site alternatives. A case study demonstrates that this integrative method yields consistent results compared with established MCDM approaches and can adapt to varying market conditions and expert opinions.

Multi-Criteria Decision Making for Logistics Center Location Optimization publication trend

The graph below shows the total number of articles in multi-criteria decision making for logistics center location optimization across all publications each year (not limited to Nature Index journals).

Technical terms

Multi-Criteria Decision Making (MCDM): A collection of mathematical techniques for ranking or selecting alternatives based on multiple, often conflicting criteria.

Fuzzy Set: A mathematical construct that allows elements to have degrees of membership, facilitating the modelling of uncertainty and vagueness in decision criteria.

Analytic Hierarchy Process (AHP): A structured MCDM method that decomposes a decision problem into a hierarchy and uses pairwise comparisons to derive criterion weights.

Technique for Order Preference by Similarity to Ideal Solution (TOPSIS): An MCDM approach that ranks alternatives according to their distance from an ideal and a nadir solution.

Geographic Information System (GIS): A computer-based tool for capturing, storing and analysing spatial and geographic data to inform location decisions.

Sensitivity Analysis: An examination of how variations in model inputs or weights affect the ranking of alternatives, used to assess decision robustness.

References

1. Assessment of distribution center locations using a multi-expert subjective–objective decision-making approach. Scientific Reports (2021).
2. Prioritization of transfer centers using GIS and fuzzy Dombi Bonferroni weighted Assessment (DOBAS) model. Expert Systems with Applications (2024).
3. A hybrid decomposed fuzzy multi-criteria decision-making model for optimizing parcel lockers location in the last-mile delivery landscape. Applied Soft Computing (2024).
4. Hybrid MCDM Model for Location of Logistics Hub: A Case in China Under the Belt and Road Initiative. IEEE Access (2021).