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Evaluating Potential Freight Villages in Istanbul Using Multi Criteria Decision Making Techniques

Evaluating freight villages and selecting one of them are complicated tasks due to the fact that various criteria or objectives must be considered in the decision making process. Also in many real world cases the criteria are not equally important for the logistic managers and government authorities. In this study, we proposed a freight village analysis model considering both Analytic Hierarchy Process (AHP) and PROMETHEE (preference ranking organization method for enrichment of evaluations) method. Subjective and objective opinions of logistic managers/experts turn into quantitative form with AHP. PROMETHEE technique is used for calculating the freight villages’ ratings. Apparently, freight village location selection is a multi-criteria problem that includes both quantitative and qualitative factors. It is necessary to make trade-off between these tangible and intangible factors while considering a suitable location. Accessibility, transport infrastructure, the value of freight villages (maritime connections, rail connections, road connections, and airport connections), distance from city center and total surface area are some of the key success factors of freight villages. The aim of this paper is to determine the appropriate freight village candidate providing the most satisfaction for the criteria identified in the supply chain management.