Location planning of urban distribution center under uncertainty: A case study of Yogyakarta Special Region Province, Indonesia

Abstract

Purpose: The paper aims at proposing a framework and demonstrating application of the framework to evaluate and select the appropriate location for Urban Distribution Center (UDC) in Yogyakarta Special Region Province, Indonesia.

Design/methodology/approach: The proposed framework consists two steps of analysis. First, spatial analysis to generate alternative locations using weighted Geographical Information System (GIS) data; second, multi-criteria decision-making to select of the best location. Multi-criteria decision-making method based on fuzzy logic was applied to deal with uncertainty. Accessibility, security, connectivity of multi-modal transport, costs, environmental impact, proximity to customers, proximity to suppliers, resource availability, expansion possibility, service quality, are taken as the decision criteria.

Findings: The proposed framework has been able to explain the unsuitability of Jogja Inland Port. Results further indicate that Jogja Inland Port appears to be the worst alternative, whereas the best location for UDC is located in Berbah (Sleman district) where a joint warehouse managed by a group of private companies has existed.

Research limitations/implications: As the study has involved the government, experts, and practitioners, future research could engage local residents as decision makers to refine the results, as various stakeholders may have different preferences.

Practical implications: From a practical point of view, the present study provides insights to the government to the application of combined approach in determining UDC location as well as evaluation toward the acceptability of Jogja Inland Port.

Social implications: The unsuccessful establishment of Jogja Inland Port implies that associated stakeholders, i.e., government, practitioners, residents, should be taken into consideration when planning Urban Distribution Center (UDC) establishment.

Originality/value: The research proposes a framework to evaluate and select the appropriate location for Urban Distribution Center (UDC) through combined approach of spatial analysis and multi-criteria decision-making which involves relevant stakeholders.