Application of fuzzy TOPSIS model in evaluating and selecting warehouse locations for YG Express Joint Stock Company

Abstract

Selecting an optimal warehouse location is a complex multi-criteria decision-making (MCDM) issue involving both quantitative and qualitative factors. This study develops a FuzzyTOPSIS-based evaluation framework to identify the most suitable warehouse location for YG Express Joint Stock Company. Four potential sites-Thanh Xuan, Hoang Mai, Gia Lam, and Dong Anh wards-were evaluated against on six key criteria: land cost, labor cost, transportation cost, natural environment, infrastructure, and the legal system. Expert opinions were collected and transformed into linguistic variables to construct the fuzzy decision matrix. The results indicate that Dong Anh ward achieves the highest closeness coefficient (0.6442), followed by Hoang Mai ward (0.6342), Gia Lam ward (0.6159), and Thanh Xuan ward (0.5911), suggesting Hoang Mai as the optimal warehouse location. The findings contribute to enhancing decision-making quality in logistics site selection under uncertainty and provide managerial implications for Vietnamese logistics firms seeking to optimize operational efficiency and reduce costs.