Comparative Analysis of PROMETHEE, VIKOR and TOPSIS for Logistics Centre Location Selection MCDM Problem

Abstract There are different multi-criteria decision-making techniques. PROMETHEE (Preference Ranking Organization Method for Enrichment Evaluations), VIKOR (VlseKriterijumska Optimizacija I Kompromisno Resenje), and TOPSIS (Technique for Order of Preference by Similarity to Ideal Solution) and ELECTRE (Elimination and Choice Translating Reality) are part of the widely used MCDM (Multi Criteria Decision-Making) methods. PROMETHEE is focused on outranking through pairwise comparison, VIKOR is focused on compromise, TOPSIS is based on the distance from the “Positive Ideal Solution (PIS)” and “Negative Ideal Solution (NIS)”. Using a logistics centre location selection problem as a case study, this paper presented the comparative analysis of these 3 methods. The ranking of the locations considered using PROMETHEE II and VIKOR are the same except for TOPSIS. This inconsistency is attributed to the inability of TOPSIS to consider the relative importance of the distances from PIS and NIS. This indicates that the issue of selecting a location for a logistics center also highlighted inconsistencies in the results due to the difference in the foundational principles of the MCDM methods. It underscores the necessity of comparing various MCDM methods before choosing the most suitable one.