Multicriteria Logistic Hub Location by Network Segmentation under Criteria Weights Uncertainty

Third party service providers locate logistic hub for operating their tasks. Finding a proper location helps them to have better performance in the competitive environment. Multiple characteristics of proper location selection faces the decision maker to have a multi criteria decision making problem. Since the location decision is a long term planning, the robustness of the decision is getting more highlighted so we applied a statistical based decision making approach to reduce uncertainty effect. Hub facilities are reducing the serving cost due to economies of scale. In this paper, in order to enhance such effect we applied the clustering analysis to find similar regions by consideration of different characteristics. The approach is implemented in an Iranian case study and the validity of the approach is investigated.