To solve the warehouse location selection problem using the TOPSIS method, we

follow these steps:

1. Normalize the decision matrix. This is done by dividing each element in the
matrix by the sum of all the elements in its column.
Proximity to Proximity to Warehouse Normalized
Locations Cost (5)
Suppliers (miles) Customers (miles) Capacity (sq. ft.) Decision Ma

A 180,000 10 50 60,000 0.32

B 100,000 12 45 50,000 0.18

C 50,000 15 6 40,000 0.09

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2. Calculate the weighted normalized decision matrix. This is done by multiplying

each element in the normalized decision matrix by the corresponding weight
of the criterion.
Criteria Weight

Cost 0.25

Proximity to Suppliers 0.20

Proximity to
0.30
Customers

Warehouse Capacity 0.25

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Locations Weighted Normalized Decision Matrix

A 0.08

B 0.05

C 0.02

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3. Determine the positive ideal solution (PIS) and negative ideal solution
(NIS). The PIS is the alternative with the best score in each criterion. The NIS
is the alternative with the worst score in each criterion.
Criteria PIS NIS

Cost 0.02 0.32

Proximity to
0.15 0.02
Suppliers

Proximity to
0.40 0.05
Customers

Warehouse
0.60 0.09
Capacity

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4. Calculate the Euclidean distance between each alternative and the PIS and
NIS. This is done using the following formula:
Distance = sqrt((x1 - y1)^2 + (x2 - y2)^2 + ... + (xn - yn)^2)

where:

 x1, x2, ..., xn are the scores of the alternative in each criterion
 y1, y2, ..., yn are the scores of the PIS or NIS in each criterion
Locations Distance from PIS Distance from NIS

A 0.28 0.19

B 0.31 0.16

C 0.46 0.09

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5. Calculate the relative closeness to the ideal solution (RCIS) for each
alternative. This is done using the following formula:
RCIS = Distance from NIS / (Distance from PIS + Distance from NIS)
Locations RCIS

A 0.40

B 0.33
 C 0.16

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6. Rank the alternatives in decreasing order of RCIS. The alternative with the
highest RCIS is the most preferred alternative.
Locations RCIS Rank

A 0.40 1

B 0.33 2

C 0.16 3

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Therefore, the final ranking of the warehouse locations is:

1. A
2. B
3. C

Therefore, the most suitable location for your company's distribution center is A.

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