Analytic hierarchy process application in selecting the mode of transport for a logistics company

Abstract

As a multi-criteria decision-making (MCDM) method, the analytic hierarchy process (AHP) has been used considerably to solve hierarchical or network-based decision problems in socio-economic fields. Following an in-depth explanation of the transport function in logistics and an overview of the MCDM methods, the AHP model is employed in the paper for a logistics company in selecting the most suitable way of transportation between two given locations in Turkey. The criteria used in the selection of transportation modes are identified as the cost, speed, safety, accessibility, reliability, environmental friendliness, and flexibility. Several cost parameters (transportation, storage, handling, bosphorus crossover) are incorporated into the decision-making process. The application is carried out in instructional character. The results of the study indicate that the railway transportation, which is not widely used in Turkey, is also an alternative and suitable means of transportation.