Where Should E-Commerce Fulfillment Hubs Be Located?A GIS–MCDM Framework for Supporting SMEs in Libya

Abstract

E-commerce in emerging and fragile markets often develops faster than the physical logistics systems required to support reliable and efficient order fulfillment. This study develops an integrated geographic information system (GIS) and multi-criteria decision-making framework for evaluating candidate cities for e-commerce fulfillment hubs in Libya. Twelve urban and logistics nodes were assessed using eight benefit-oriented criteria: market demand, road accessibility, port accessibility, airport accessibility, small and medium-sized enterprise (SME) activity, land affordability, national service centrality, and operational resilience. CRITIC derived objective criterion weights from the contrast and correlation structure of the decision matrix, while TOPSIS was employed to rank the candidate cities according to their overall suitability. Radial basis interpolation was subsequently used to visualize demand, multimodal accessibility, and composite suitability patterns across the study area. The results identify Misrata as the highest-ranked location, followed by Benghazi and Tripoli. Misrata combines port strength, road accessibility, land affordability, industrial and SME activity, and national centrality; Benghazi provides the strongest eastern anchor; and Tripoli offers the largest market and SME concentration. Sensitivity analysis confirms that these three cities remain within the leading group under demand-led, infrastructure-led, SME-support, and resilience-led scenarios. The proposed framework provides a transparent and replicable decision-support tool for public agencies, logistics providers, and SME-support organizations seeking to prioritize fulfillment investments and develop phased logistics networks.