Track: Supply Chain Management

Abstract

When it comes to improving logistic operations, the placement of a warehouse is generally one of the most important and strategic considerations. A single warehouse site will not be able to match the requirements of rapid delivery for customers distributed across a large area. As a result, the multi-COG model (multiple warehouse locations) is necessary. A warehouse's location is a long-term choice based on a number of quantitative and qualitative factors. To account for a variety of considerations in warehouse selection, a two-stage strategy is provided. The first part of this work involves doing macro analysis for various warehouse locations using clustering methods, with the number of warehouses determined based on the Within Cluster Sum of Squares (WCSS). In the second stage for phase-by-phase dissertation planning of warehouse are selected based on two Multiple Criteria Decision Making (MCDM) methods, Weighted Aggregated Sum Product Assessment (WASPAS) and Analytical Hierarchical Process (AHP), has been compared on five criteria: Warehouse cost per Sqft, Infrastructure access, Number of customers, Delivery time, Quantity of Sales. With over 650 delivery sites, four warehouses were chosen and a two-phase warehouse implementation strategy outlined.