Analytic hierarchy process (AHP) model for optimum distribution network selection in food industries

Abstract

Efficient supply chain distribution network design must consider various dimensions of performance and product characteristics. The appropriate choice of distribution network results in customer needs to be satisfied at the lowest possible cost. Investigators have recently begun to realize that the decision in the supply chain distribution network design must be driven by an extensive set of performance metrics and the characteristics of the products. In this paper, cost and service factor performance metrics were regarded as the decision criteria for optimizing supply chain distribution network design. Qualitative and quantitative factors were considered in selecting the optimum delivery network design by using the Analytic Hierarchy Process (AHP) methodology. After aggregating ideas from a group of experts and customers, the selection decision is made. Sensitivity analysis was performed to show the robustness and consistency of the model. The results of the analysis illustrate the model is found to be stable and robust and food manufacturers can select their suitable and optimum distribution network designs according to this study.