Optimal location of warehouse using weighted MOORA approach

Optimal location of warehouse for a company is a complex and unstructured problem that must be dealt very carefully. A location error can lead to very grave economic loss, since warehouse site selection involves the influence of many parameters like unit price, stock holding capacity, average distance and movement flexibility, and therefore it is a multi-criteria decision making problem. In this research, initially, the personal preference of each of the parameters has been calculated using Simos procedure which influences the decision matrix of the ware house location. Then weighted multi objective optimization on the basis of ratio analysis (MOORA) methodology optimizes the warehouse site. A case study of a particular warehouse selection case has been presented to demonstrate the effectiveness of this model. The result shows that the model is superior and more realistically optimizes the ware house site selection procedure. A comparison has been made with the result of the technique for order preference by similarity to the ideal solution (TOPSIS) methodology which proves the applicability of the Weighted MOORA methodology in such problems.