Warehouse location selection using AHP: a case of third-party logistics provider in India
by Mahak Sharma; Ruchita Gupta; Swati Premchandani
International Journal of Supply Chain and Inventory Management (IJSCIM), Vol. 4, No. 2, 2023

Abstract: In developing economies with dynamic market conditions, building a new facility is one of the firm's biggest challenges. The location of the warehouse has a considerable impact on revenues, cost, and level of service. There is always a trade-off between inventory and distribution cost, and location plays a vital role in bridging the gap between the two costs. Thus, warehouse site selection is one of the critical decisions for any company. For a third-party logistics provider housing products of different companies belonging to various industries, the major challenge is selecting a location of the new warehouse to fulfil the requirements of all. Thus, the study's objective is to identify critical factors for optimal location selection for the warehouse. The paper presents a real-life problem (in the Indian context) of consolidating four warehouses of third-party logistics (3PL) providers to reduce cost. The study adopts the Delphi method, followed by the analytical hierarchy process.

Online publication date: Mon, 19-Jun-2023

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