Warehouse Location selection for an electricity distribution company by KEMIRA-M method

Abstract

In this study, by using Modified Kemeny Median Indicator Ranks Accordance (KEMIRA-M) approach which begins to become popular in recent times for solution of Multi criteria Decision Making (MCDM) problems, warehouse location selection for an electricity distribution company is performed. KEMIRA-M logically distinguishes criteria into two groups and it computes criteria importance weights by including interactions between both groups. KEMIRA-M considers both decision makers' preferences related to the priorities of criteria and quantitative or qualitative values of these criteria in decision making process. Decision makers can change importance weights of criteria based on median priority component representing expected rankings of criteria importance weights and they can see the effect of this variability on rankings of alternatives. In warehouse location selection problem investigated in this study, it is aimed to choose the favorable location considering different criteria and these criteria were grouped firm related and environmental criteria to evaluate 20 alternative warehouse locations. In this context, as firm related criteria; Operation Center-Meeting Point (OC-MP) transportation cost per month, main warehouses' transportation costs per month, number of connected OC-MP, consumption amounts of OC-MP were considered. Population, distance to the closest main road, average distance to main supplier, mobility, investment amounts in 2018, average delivery time and land cost were taken into account as environmental criteria group.