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LogForum  2010 

Application of multiple criteria decision aid methods in logistic systems

Keywords: Redesign of logistic systems , location problem , MCDA methodology , Electre III and AHP methods

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Abstract:

The paper presents the application of different multiple criteria decision aid (MCDA) methods in two logistic systems. One of them is the Polish system, while the second is a worldwide one operating also in Poland. Based on their precise analysis strengths and weaknesses are identified. They lead to the construction of different alternatives - development scenarios of the two considered logistic systems. The alternatives are designed heuristically and evaluated by two different sets of criteria. In both cases, selection of the most desirable solution is required. The decision problem is formulated as a multiple criteria ranking problem, thus all the considered development scenarios are ranked from the best to the worst. The methodology of MCDA is applied. The authors present selected MCDA ranking methods, including: Electre III and AHP. Those methods fit the best to the two considered decision problems of logistic systems. The computational experiments are carried out and their results are presented. The authors discuss the results generated by two MCDA methods and draw final conclusions regarding their suitability for the analyzed decision problems.

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