SELECTION OF THE LOCATION OF THE DISTRIBUTION CENTER FOR AGRICULTURAL PRODUCTS

Abstract

The aim of the study was to use a multi-criteria decisionmaking method to make a rational choice for a new location for the distribution centre of agricultural products in the northeastern part of Bosnia and Herzegovina, specifically in five populated areas. The required criteria were selected based on experiences from previous research in this field, and decision-makers involved in the selection were engineers and technologists from the company in question. The results indicate that the criteria of construction cost and market connectivity gained the greatest importance, and Brčko was chosen as the location for the future distribution centre among the five populated areas. Additionally, the successful application of the used multi-criteria decision-making method, in this case, the CoCoSo method, was demonstrated. This could lead to improvements in making future business decisions within this economic sector.

Keywords

• distribution centres
• agricultural products
• multi-criteria decision-making
• CoCoSo method