Application of analytical hierarchy process for temporary warehouse selection : a case study

Abstract

The objective of this research was to evaluate the criteria for temporary warehouses based on case studies about the lack of warehouses during the COVID-19 pandemic. The Analytic Hierarchy Process (AHP) was utilized to determine the significant factors that affected the selection of a temporary warehouse. The criteria for determining the location of a new warehouse and selecting temporary warehouses, including management, production, and warehouse operations, were analyzed by experts. The optimal criteria for five temporary warehouses were divided into four major categories and 12 sub-criteria. The findings indicated that cost criteria were the most influential factors in the decision to rent temporary warehouses (60.90%), followed by infrastructure criteria (20.30%), transportation criteria (12.00%), and cooperation (6.80%). Based on the Analytic Hierarchy Process analysis of the temporary warehouse evaluation criteria, the best-in-class was rental warehouse 1 in the COVID-19 pandemic situation (35.70%). Implication of thematic paper: This research focuses on the study of appropriate factors in the selection of temporary warehouses based on a case study to be used as decision-making information in business. The Analytic Hierarchy Process (AHP) is implemented for the analysis to find the optimal temporary warehouse in the case study of a glass packaging factory.