The Selection of Logistic Centers Location Using Multi-Criteria Comparison: Case Study of the Balkan Peninsula

Abstract

This paper focuses on finding the most suitable location for the logistic centers in the area of the Balkan Peninsula (BP). Strategic global logistic center location decisions involve many environmental factors that may be conflicting in nature, and can pose a difficult selection problem. This paper uses the environment-strategy-performance (E-S-P) paradigm as a means to understand the relevance of environment complexity on logistic centers, while proposing that an environmental analysis properly represents a multicriteria decision-making problem. Aiming at a more precise analysis of the environmental influence for finding suitable location of logistic centers, mathematical methods such asGreedy heuristic algorithm and Analytic Hierarchy Process (AHP) are used in this paper.Implementation of the Greedy heuristic algorithm in AHP improves the existing methodology for finding the most suitable location for logistic centers.Besides location selection, this is an illustrative method that evaluates logistic capabilities for individual countries in BP.