A Hybrid Analytic Hierarchy Process for Clustering and Ranking Best Location for Logistics Distribution Center

  • Dragan SimićEmail author
  • Vladimir Ilin
  • Ilija Tanackov
  • Vasa Svirčević
  • Svetlana Simić
Conference paper
Part of the Lecture Notes in Computer Science book series (LNCS, volume 9121)


Facility location decisions play a critical role in the strategic design of supply chain networks. This paper discusses facility location problem with focus on logistics distribution center (LDC) in Balkan Peninsula. Methodological hybrid Analytical Hierarchy Process (AHP) and k-means method is proposed here and it is shown how such a model can be of assistance in analyzing a multi criteria decision-making problem. This research represents a continuation of two existing studies: (1) PROMETHEE II ranking method; and (2) combine Greedy heuristic algorithm and AHP. The experimental results in our research could be well compared with other official results of the feasibility study of the LDC located in Balkan Peninsula.


Facility location Logistics distribution center Analytical hierarchy process k-means clustering 



The authors acknowledge the support for research project TR 36030, funded by the Ministry of Science and Technological Development of Serbia.


  1. 1.
    Tomić, V., Memet, A., Milosavljević, M., Milisavljević, S.: Decision on the logistics centers location, case of the Balkan peninsula. Ann. Oradea Univ. Fascicle Manage. Technol. Eng., Issue 2, pp. 330–338 (2013)Google Scholar
  2. 2.
    Tomić, V., Marinković, D., Marković, D.: Using multi-criteria comparison: case study of the Balkan peninsula. Acta Polytech. Hung. 11(10), 97–113 (2014)Google Scholar
  3. 3.
    Bhattacharya, B.K., Sen, S.: On a simple, practical, optimal, output-sensitive randomized planar convex hull algorithm. J. Algorithms 25(1), 177–193 (1997)CrossRefzbMATHMathSciNetGoogle Scholar
  4. 4.
    Kahraman, C., Ruan, D., Dogan, I.: Fuzzy group decision-making for facility location selection. J. Inf. Sci. 157(1), 135–153 (2003)CrossRefzbMATHGoogle Scholar
  5. 5.
    Ertugrul, I., Karakasoglu, N.: Performance evaluation of Turkish cement firms with fuzzy analytic hierarchy process and TOPSIS methods. Expert Syst. Appl. 36(1), 702–715 (2009)CrossRefGoogle Scholar
  6. 6.
    Chu, T.C.: Selecting plant location via a fuzzy TOPSIS approach. Int. J. Adv. Manuf. Technol. 20(11), 859–864 (2002)CrossRefGoogle Scholar
  7. 7.
    Chou, C.C.: The canonical representation of multiplication operation on triangular fuzzy numbers. Comput. Math Appl. 45(10–11), 1601–1610 (2003)CrossRefzbMATHMathSciNetGoogle Scholar
  8. 8.
    Yang, L., Jones, B.F., Yang, S.H.: A fuzzy multi-objective programming for optimization of fire station locations through genetic algorithms. Eur. J. Oper. Res. 181, 903–915 (2007)CrossRefzbMATHGoogle Scholar
  9. 9.
    Deng, H., Yeh, C.H., Willis, R.J.: Inter-company comparison using modified TOPSIS with objective weights. Comput. Oper. Res. 27(10), 963–973 (2000)CrossRefzbMATHGoogle Scholar
  10. 10.
    Shih, H.S., Shyur, H.J., Lee, E.S.: An extension of TOPSIS for group decision making. Math. Comput. Model. 45(7–8), 801–813 (2007)CrossRefzbMATHGoogle Scholar
  11. 11.
    Zanakis, S.H., Solomon, A., Wishart, N., Dublish, S.: Multi-attribute decision making: a simulation comparison of select methods. Eur. J. Oper. Res. 107(3), 507–529 (1998)CrossRefzbMATHGoogle Scholar
  12. 12.
    Boile, M., Theofanis, S., Wieder, A.: Feasibility of Freight Villages in the NYMTC Region, Center for Advanced Infrastructure and Transport, New Jersey (2008)Google Scholar
  13. 13.
    Bentzen, K., Laugesen M., Cerneckyte, V.: Transport and Logistics Centres, SUTRANET – Sustainable Transport Research & Development Network in the North Sea Region, Aalborg (2007)Google Scholar
  14. 14.
    Sharma, M.J., Moon, I., Bea, H.: Analytic hierarchy process to assess and optimize distribution network. Appl. Math. Comput. 202(1), 256–265 (2008)CrossRefzbMATHGoogle Scholar
  15. 15.
    Saaty, T.L.: Analytic Hierarchy Process, Planning, Priority Setting, Resource Allocation. McGraw Hill Inc., New York (1980)zbMATHGoogle Scholar
  16. 16.
    Everitt, B.S., Landau, S., Leese, M., Stahl, D.: Cluster Analysis. Wiley, Hoboken (2011)CrossRefzbMATHGoogle Scholar

Copyright information

© Springer International Publishing Switzerland 2015

Authors and Affiliations

  • Dragan Simić
    • 1
    Email author
  • Vladimir Ilin
    • 1
  • Ilija Tanackov
    • 1
  • Vasa Svirčević
    • 2
  • Svetlana Simić
    • 3
  1. 1.Faculty of Technical SciencesUniversity of Novi SadNovi SadSerbia
  2. 2.Lames Ltd.Sremska MitrovicaSerbia
  3. 3.Faculty of MedicineUniversity of Novi SadNovi SadSerbia

Personalised recommendations