Evaluating the Selection of Logistics Centre Location Using Fuzzy MCDM Model Based on Entropy Weight

Abstract

Evaluating selection of logistic centre location is basically determined by decision makers' subjective perceptions and feelings towards each of the evaluated criterion, so it is more reasonable to deal this problem with fuzzy decision model. Fuzzy AHP (Analytic Hierarchy Process) is proposed to determine the rank in logistic centre location scheme evaluation. In order to include the domain expertise into the decision process and improve evaluation performance, we develop a fuzzy MCDM (multicriteria decision making) model to modify the fuzzy AHP weights based on the entropy technique, by making use of the decision matrix information through Delphi method. We apply fuzzy comprehensive evaluation algorithm to optimize selection location for logistic centre. The rank result indicates this model is a feasible and practical decision support model which analyses both the qualitative and quantitative factors.