2nd ICAI 2022

International Conference on Automotive Industry 2022

Mladá Boleslav, Czech Republic

Application of the AHP Decision Making Method in Warehouse Management in the Metallurgical Company

Tomáš Malčic 1 , Jan Fábry 2 ŠKODA AUTO University 1, 2 Department of Production, Logistics and Quality Management Na Karmeli 1457, Mladá Boleslav, 293 01 Czech Republic e-mail: tomas.malcic@savs.cz 1 , jan.fabry@savs.cz 2

Abstract The aim of this paper is to present the possibilities to implement the model of system based on the AHP method for optimization of multicriteria decision-making process in warehouse management in metallurgical company. First part of the paper will contain the literature review about AHP method in general and about use cases of application of AHP in manufacturing industry companies. In the second part of the paper the case study of application of the AHP based model for support of decision-making in process of storing finished products in the expedition warehouse of medium-fine rolling mill in selected metallurgical company. First the current state of production and logistics processes was analysed. Then the model for dynamic management of the organization of the expedition warehouse of a metallurgical company was constructed. In the last part of this paper the application of the proposed model on two selected warehouse events in defined warehouse conditions will be presented. The selected problem will be solved in specialized SW for AHP. The results of the model application will be evaluated. Finally the conclusions and recommendations for application of AHP method in industrial warehouse management will be deduced. Keywords: multicriteria decision making, warehouse management, AHP, metallurgy, inhouse logistics JEL Classification: L00, L61, L23 1. Introduction Many managerial decision-making problems are usually determined by multiple, partially conflicting, goals. Multiple criteria decision-making (MCDM) tools help user achieve conclusive decisions with the individual preferences as to the selected criteria and evaluated alternatives (Zavadskas and Turskis, 2011). MCDM methods, as the appropriate techniques used in complex decision situations, vary according to the form of the available information about decision-making problem. In addition, MCDM tools deal with different needs of managers and decision makers. Decision settings requires experiences and preferences of multiple decision makers, whose participation may significantly improve the outcome of strategic decision environment. Analytic hierarchy process (AHP) was proposed as a decision-making technique to evaluate multiple criteria alternatives among one or more decision-makers, using hierarchical

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