Integrating three-dimensional sustainability in distribution centre selection: the process analysis method-based analytic network process

Abstract

In this paper, we propose a combined methodology for the selection of distribution centres (DCs) by integrating and balancing economic, environmental and social sustainability aspects. The analytic network process (ANP) permits to systematically evaluate possible DCs on the basis of a situation-specific decision structure. A systematic development of the decision networks, which is one of the core challenges using the ANP, is supported by the process analysis method which we extend for that purpose. The validity and soundness of the proposed framework are demonstrated by means of a case study. The case study results reveal that omitting aspects of sustainability can lead to unfortunate results.

Keywords:

• analytic network process
• process analysis method
• distribution centre selection
• corporate sustainability
• sustainable supply chain management

Notes

1. The terms ‘network’, ‘sub-network’, ‘cluster’, ‘element’ and ‘arc’ correspond to the terms introduced by Saaty and Saaty (2002). Networks and sub-networks comprise elements that correspond to decision criteria or alternatives. Similar sets of elements are grouped by clusters. Arcs reflect interrelationships between the elements. For more information, we refer to Saaty (2001) and Saaty and Saaty (2002).