Selection of an international distribution center location: A comparison between stand-alone ANP and DEMATEL-ANP applications

Abstract

The problem of Distribution Center (DC) strategic location is critical since it impacts the company's overall distribution strategy and enhances supply chain resilience. This paper compares and evaluates five locations in Europe for the possible establishment of an international distribution center. The Analytic Network Process (ANP) and Decision-Making Trial and Evaluation Laboratory (DEMATEL)-Based ANP techniques were applied in the analysis, considering 25 criteria across seven dimensions. This paper aims to provide a decision-making framework for prioritizing distribution center locations in Europe, identifying key criteria, and ranking alternative locations to guide decision making processes for stakeholders and policy makers involved in DC location selection. The results demonstrated that both approaches rank the alternatives similarly, although they assign varying degrees of importance to decision criteria. The research was constrained by a limited number of alternatives and respondents, as well as imprecision in human judgments. Future research will explore additional sustainability and social criteria, more alternative locations, and incorporate fuzziness for a more comprehensive selection of the optimal International Distribution Center (IDC) location.