Analytic hierarchy process to assess and optimize distribution network

Effective supply chain distribution network design needs to consider various performance dimensions and product characteristics. Recently, researchers have begun to realize that the decision and integration effort in supply chain design should be driven by a comprehensive set of performance metrics and also product characteristics. In this paper, we relate product characteristics to optimizing supply chain delivery network design and adopt cost and service factor performance metrics as the decision criteria. An analytic hierarchy process (AHP) multi-criteria decision-making methodology is then developed to take into account both qualitative and quantitative factors in the best delivery network design selection. By using AHP methodology we could optimize the selection of delivery network design followed by relevant choices for decision making of Home plus distribution center. (C) 2008 Elsevier Inc. All rights reserved.