Determination of the Best Alternative Position for the Storage Location/Product Assignment by Using Vikor

Abstract

In this study, the best alternative location policy is determined by considering multiple criteria such as transportation distance, area of use, product demand, sensitivity, profitability and minimizing the cost incurred by a storage area. So, the best alternative policy is determined to apply a mathematical model that minimizes the transportation time or cost of warehouse allocation within the warehouse area by using multicriteria decision making (MCDM) methods. For optimal placement, a mathematical model proposed by Muppani and Adil is taken as reference which includes transportation distance, area and resulting cost items. According to the established criteria, harmonic solution values for each product were obtained from the VIKOR method and entered into the class formation and assignment model. The MCDM based on the class formation and assignment model was solved using the software GAMS/BARON. We randomly generated the data used for the solution. The results showed that we can assign the products to the warehouse by considering multiple criteria according to the preference of the decision maker. © 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.