MULTI-CRITERIA DECISION MAKING APPROACH FOR LOGISTICS COSTS: CASE OF WAREHOUSE AREA SELECTION

When the cost chain in all processes from production to consumption is analyzed, it is seen that logistics costs have a significant weight. It is a fact that most of these costs do not have any added value for the customer who is the ultimate user of the product. At this point, it is important to control the logistics processes and manage them very well in terms of cost efficiency. Because in the globalizing world, the areas that enterprises can take into consideration for profitability are increasingly restricted. The raw material prices as well as all kinds of equipment used in the production processes, are very close to each other in terms of cost. This would mean decreasing the costs by reducing the profit margin or making improvements in all processes. Warehousing activities, which are completely unimportant to the customer and have no added value to the product, should also be evaluated within this scope and cost effective approaches should be adopted in the storage related processes. In the study, the weighted product model and additive weighting method, which are one of the multi criteria decision making techniques, were applied by considering the same criteria in the storage area selection and the results were compared