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Combining AHP and TOPSIS method for logistics hub selection

Author

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  • Apichat Sopadang
  • Ruth Banomyong

Abstract

The purpose of this paper is to propose a methodology to help identify country-level logistics hub (Thailand, Lao PDR and Vietnam) along the East-West Economic Corridor (EWEC) using two mathematical methods. Phase 1 identified five main factors impacting logistics hub selection that are derived from the literature studies. These factors are trade volume, infrastructure, institutional framework, service providers, shippers and consignees. Phase 2 utilises the analytic hierarchy process (AHP) method to define weight for each criterion. Experts in related fields were interviewed in order to make dyadic comparisons. Phase 3 focussed on the technique for order preference by similarity to ideal solution method to rate alternatives by assigning weights defined through AHP and by calculating which alternative is the nearest to the ideal solution. The findings conclude that Thailand, particularly thanks to its large trade volume, is the best country to be considered as a logistics hub for the EWEC.

Suggested Citation

  • Apichat Sopadang & Ruth Banomyong, 2016. "Combining AHP and TOPSIS method for logistics hub selection," International Journal of Management and Decision Making, Inderscience Enterprises Ltd, vol. 15(2), pages 134-153.
    • Handle: RePEc:ids:ijmdma:v:15:y:2016:i:2:p:134-153
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    Cited by:

    1. Wen, Xiangxi & Tu, Congliang & Wu, Minggong & Jiang, Xurui, 2018. "Fast ranking nodes importance in complex networks based on LS-SVM method," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 506(C), pages 11-23.
    2. Khalid Aljohani, 2023. "Optimizing the Distribution Network of a Bakery Facility: A Reduced Travelled Distance and Food-Waste Minimization Perspective," Sustainability, MDPI, vol. 15(4), pages 1-26, February.

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