ABSTRACT
In this chapter, we examine multiple-criteria logistics distribution with analytic hierarchy process and demonstrate how SAS/OR® can be applied to solve the problems to optimality.
8.1.1 Concept of Multiple-Criteria Logistics Distribution Problem
The logistics distribution problem allocates a number of points of consumption to a number of points of supply, including suppliers, manufacturers, warehouses, distribution centers, and customers. The connection of these logistics stakeholders by means of transportation facilities is regarded as the logistics distribution network. Logistics distribution network design is one of the major decision problems arising in contemporary supply chain management. There are two primary inadequacies in the traditional approaches to the problem. First, the focus is confined to the points of supply. The objective is either to minimize the total logistics cost or the total delivery time. However, consideration of the customers is neglected. Second, only quantifiable data are considered in the optimization techniques. Some qualitative factors that are mainly customer oriented are not taken into account.
