APPLYING THE AHP METHOD FOR SELECTING THE LOCATION OF A FINISHED GOODS WAREHOUSE: A CASE STUDY IN AN EMULSIFIER COMPANY IN THE PARAÍBA VALLEY

Abstract

This study aims to analyze the feasibility of relocating the finished goods storage facility of a natural emulsifier manufacturing company, which currently stores its products in a rented warehouse in Taubaté city, located at a distance from its production unit in Potim. This arrangement results in high logistics costs and operational challenges, such as frequent transportation, quality control, and product traceability. The proposal to centralize storage operations in Potim emerges as a strategic alternative to reduce costs and optimize cross-department integration. Additionally, the relocation may contribute to reducing the company’s carbon footprint by minimizing material handling and transportation, in accordance with sustainability demands and international certifications such as FSSC 22000, Halal, and Kosher. To support decision-making, the Analytic Hierarchy Process method will be applied, which enables the structuring and prioritization of technical, logistical, operational, and strategic criteria through pairwise comparisons. The analysis will consider three alternatives: maintaining the current rented warehouse, refurbishing an existing facility in Potim, or constructing a new structure at the same site. Evaluation criteria include cost, return on investment, flexibility for expansion, sustainability, integration with production, and asset security. The study begins with mapping the current storage process, followed by defining the key decision criteria and applying AHP to rank and analyze the alternatives. The expected results include identifying the most efficient solution aligned with the company’s strategic goals. It is concluded that the AHP method can significantly support complex logistics decisions by providing a structured and quantitative basis for selecting the most suitable storage location.