Selection of sales distribution channel in agricultural enterprise

Abstract

According to applied TOPSIS multi-criteria decision-making method (Technique for Order of Preference by Similarity to Ideal Solution), in paper was selected adequate sales distribution channel in one enterprise active within the agro-food sector at the territory of Semberija (BiH). Decision makers, in this case represented by employed management in enterprise, have been evaluated five sales distribution channels in enterprise in line to previously defined criteria, i.e. products' characteristics, company's financial situation, consumer habits, production costs, geographic concentration, and products' assortment. The main goal of research was to create a model for optimal selection of sales channels, while derived results have been showed that the model "producer - seller (retailer) - consumer" is the most adequate towards the predefined selection criteria. In addition to the justified role of used method in selection of offered alternatives, article also represents a base that will serve in further research, whose focus would be on modernizing of existing and searching for new distribution channels in agricultural enterprises.

Keywords

• distribution channel
• sales
• topsis method
• multicriteria decisionmaking
• agricultural enterprise