DC site selection from both quantitative and qualitative perspectives, by Jing Luo (with Logitech)
June 7, 2013
Logitech management team needs to decide which location in India should be selected for the new Logitech distribution center. Costs and service level improvements are not the only motives. There are other concerns about labor, tax, access to customers and so on, which are qualitative and cannot be quantied. For the site location decision, the present study attempts to quantify the qualitative variables and combine both quantitative and qualitative aspects. In addition to the cost and lead time simulation model, the AHP model is adopted to evaluate possible locations over qualitative criteria. Results suggest that there is no signicant reason that Logitech should move to India. However, there are opportunities worth exploring. Results also show that the approach of the present study could bring benets to businesses, which helps to combine business performance measures with the internal hierarchy of business functions.