Copyright: Wyższa Szkola Logistyki, Poznań, Polska Citation: Sawicka H., Węgliński S., Witort P., 2010, Application of multiple criteria decision aid methods in logistic systems. LogForum 6, 3, 10 URL: http://www.logforum.net/vol6/issue3/no10 Accepted: 16.08.2010, on-line: 10.09.2010. LogForum > Electronic Scientific Journal of Logistics < ISSN 1734-459X 2010 Vol. 6 Issue 3 No 10 http://www.logforum.net APPLICATION OF MULTIPLE CRITERIA DECISION AID METHODS IN LOGISTIC SYSTEMS Hanna Sawicka, Szymon Węgliński, Piotr Witort Poznan University of Technology, Poznań, Poland ABSTRACT. The paper presents the application of different multiple criteria decision aid (MCDA) methods in two logistic systems. One of them is the Polish system, while the second is a worldwide one operating also in Poland. Based on their precise analysis strengths and weaknesses are identified. They lead to the construction of different alternatives - development scenarios of the two considered logistic systems. The alternatives are designed heuristically and evaluated by two different sets of criteria. In both cases, selection of the most desirable solution is required. The decision problem is formulated as a multiple criteria ranking problem, thus all the considered development scenarios are ranked from the best to the worst. The methodology of MCDA is applied. The authors present selected MCDA ranking methods, including: Electre III and AHP. Those methods fit the best to the two considered decision problems of logistic systems. The computational experiments are carried out and their results are presented. The authors discuss the results generated by two MCDA methods and draw final conclusions regarding their suitability for the analyzed decision problems. Key words: Redesign of logistic systems, location problem, MCDA methodology, Electre III and AHP methods. INTRODUCTION The general definition of logistic presented by many authors [Coyle et al. 1996, Tarkowski et al. 1995] states that this is the activity based on the flow of products from points of origin to points of destination i.e. final customers. Its aim is to optimize the coordination of the flow of raw materials and goods, warehousing, goods loading and unloading, transporting, packing and managing. Council of Logistics Management [1985] formulates more complex definition. Logistic is the process of planning, implementing and controlling the efficient, cost-effective flow and storage of raw materials, in-process inventory, finished goods and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. Taking into account many definitions the authors of this paper consider the logistic system as a set of such elements as: logistic infrastructure, human resources, transportation fleet, business processes and organizational rules that provide coordination and control over the above mentioned components. Those components should match together to assure the efficiency and effectiveness of the whole logistic system and a coordinated flow of materials (products), information and cash. That is why the design and redesign of the logistic system is a very complex task. The redesign of the logistic system [Coyle et al. 1996] may be carried out either in a heuristic manner or in a more rigid conceptual form, based on a mathematical formulation of the redesign process. In the first case different development scenarios of the logistic system are designed