Warehouse operator selection by combining AHP and DEA methodologies

In this paper we propose an approach for selecting the warehouse operator network by combining the analytic hierarchy process (AHP) and the data envelopment analysis (DEA). With the AHP, the alternative warehouse operators can be evaluated by using multiple, both qualitative and quantitative criteria. The outcome of the AHP analysis is a preference priority for each alternative operator describing the expected performance level. The DEA method can then be used to solve this multi-criterion problem by developing a DEA model for measuring warehouse operators' efficiency by using the information of the AHP analysis and combining that with data concerning the process inputs. The utilization of the proposed approach is demonstrated with an illustrative example. (C) 2007 Elsevier B.V. All rights reserved.