Strategic selection of a logistics center location using a hybrid MCDM model based on PIPRECIA and SAW methods: An empirical study

Abstract

The strategic selection of a logistics center location represents a complex multi-criteria problem involving economic, infrastructural, and socio-geographical factors. This paper applies a hybrid MCDM model based on the PIPRECIA and SAW methods to evaluate and rank potential locations in the Republic of Serbia. A set of ten criteria was defined, and weight coefficients were determined using the PIPRECIA method via direct and inverse procedures. The stability of the obtained weights was confirmed using Spearman's rank correlation coefficient (ρ=0.723724). The final ranking was performed using the SAW method for three alternative locations: Belgrade, Smederevo and Požarevac. The results indicate that utility infrastructure C 4, proximity to the highway C 2, and labor availability C 3 are the most important criteria. Belgrade was identified as the optimal location (score 4.26), ahead of Smederevo (3.86) and Požarevac (3.69). The research confirms that the hybrid PIPRECIA-SAW model represents an efficient and transparent decision-support tool for logistics center site selection at the regional level in Serbia.