A Multi-Criteria Analysis for E-commerce Warehouse Location Selection Using SWARA and ARAS Methods

Selection of the optimal warehouse location represents a key strategic decision in modern logistics, particularly in the context of the rapid development of e-commerce and the increasing complexity of supply chains.The aim of this research is to identify the most favorable warehouse location within the urban area of Belgrade by applying multi-criteria decision-making (MCDM) methods.Specifically, a hybrid methodology that integrates the Step-wise Weight Assessment Ratio Analysis (SWARA) and Additive Ratio Assessment (ARAS) methods was employed to evaluate five real-world alternative locations based on eight relevant criteria.The considered criteria include: land cost, delivery time, infrastructure accessibility, labor availability, access to multiple modes of transport, site capacity, environmental conditions and regulatory compliance, as well as the competitiveness of the location itself.Criterion weights were determined through expert evaluation using the SWARA method, while the ARAS method was applied to rank the alternatives based on their normalized performance scores.The analysis indicated that the location in Batajnica (A1) is the most favorable, closely followed by the location on Panevaki Road (A3), owing to their balanced performance across economic, infrastructural, and operational dimensions.In contrast, the location in Kaluerica/Letane (A4) proved to be the least suitable, primarily due to poor infrastructure access and limited labor availability.The results confirm the applicability and effectiveness of combining SWARA and ARAS methods for solving complex decision-making problems involving multiple, often conflicting, criteria.