Journal of Business Case Studies – May/June 2011 Volume 7, Number 3 © 2011 The Clute Institute 49 A Fuzzy Topsis Approach For Logistics Center Location Selection Burak Erkayman, Atatürk University Erzurum, Turkey Emin Gundogar, Sakarya University Sakarya, Turkey Gökay Akkaya, Atatürk University Erzurum, Turkey Mümtaz Ipek, Sakarya University Sakarya, Turkey ABSTRACT It is clearly known that urban freight transportation has a significant role on sustainable development of urban areas. The persistent growth of the costs of freight transportation and as a result of congestion, environmental pollution and increasing inefficient usage of land in urban areas are forcing users and public authorities to develop alternative logistic solutions to relieve the freight traffic problem. Establishing logistics centers is one of these alternative solutions. Logistics centers are specific centers that various logistic based activities like distribution, storage, transportation, consolidation, handling, customs clearance, imports, exports, transit processes, infrastructural services, insurance, banking and similar commercial activities are performed. These centers are defined for national and international all logistic and related operations. Logistic centers must be settled near production and commercial centers, highways, railways, airports and if possible seaports. In this study we proposed a fuzzy TOPSIS approach to a logistics center location selection problem in eastern anatolia region of Turkey. Keywords: logistics center; urban logistics; city logistics; fuzzy TOPSIS 1. INTRODUCTION ogistics has been defined as, ‘the process of strategically managing the movement and storage of materials, parts and finished inventory from suppliers, through the firm and on to customers’. Freight transport accounts, on average, for only around 40% of a company’s total logistics costs. Roughly 1.75 million people worked in ‘logistics and related roles’ in 2003–2004. Logistics also plays a vital role in maintaining economic prosperity and social well-being [1]. Urban logistics has been defined as those movement of goods that are affected by particularities associated to urban traffic and morphology [16]. Increasing road freight vehicle number and their impacts in urban areas and cities have received more attention in recent years. Freight and passenger transportation in urban areas result several problems like social, economic, environmental and etc. Road freight vehicles operating in an urban environment generally emit a greater proportion of certain pollutants per kilometre travelled than other motor vehicles such as cars and motorcycles. This is due to their higher fuel consumption per unit of distance travelled and the fact that many of them use diesel as a fuel [2]. The growing flows of freight have been a fundamental component of contemporary changes in economic systems at the global, regional and local scales. The consideration of these changes must be made within a perspective where they are not merely quantitative, but structural and operational [3]. Some significant reasons of how important freight transportation are [2];  It is fundamental to sustaining our existing life style.  The role it plays in servicing and retaining industrial and trading activities which are essential majör wealth generating activities.  The contribution that an efficient freight sector makes to the competitiveness of industry in the region concerned.  The effect of freight transport and logistics costs on the cost of commodities consumed in that region. L