A hybrid approach based on the analytic hierarchy process and 2-tuple hybrid ordered weighted averaging for location selection of distribution centers

Distribution centers (DCs) are an important part of the modern logistics system. The selection of a location for a DC is significant for saving costs and reducing externalities caused by distribution. In this paper, we propose a new hybrid method based on the analytic hierarchy process (AHP) and 2-tuple hybrid ordered weighted averaging (THOWA) to select the location of a DC in a megacity. First, we propose a new set of evaluation criteria integrating economic, political, social and ecological information based on the characteristics of Chinese megacities. Second, subjective criteria weights are calculated by AHP combining the evaluation of logistics experts. Third, experts from academia, enterprise and government assess the performance of alternatives. In addition, the overall evaluation values are aggregated by an improved THOWA operator to rank the alternatives. Finally, we conduct a sensitivity analysis to investigate the influence of criteria weights on the decision-making process. The proposed method is novel and addresses the uncertainty under limited quantitative information, which has the advantages of avoiding information loss and distortion problems in the integrating process and operating linguistic evaluation information effectively. The proposed method can be practically applied by municipal planning departments in deciding on the location of new DCs. A numerical application of the proposed method is provided.