Futuristic logistics center integrating transport modes for sustainable supply chains.

Location, Location, Logistics: How to Pick the Perfect Spot for Your Multimodal Center

Reese Marlowe in Tech & Innovation June 2025 • 4 min read.

"Unlock the secrets to sustainable logistics: A deep dive into the DEMATEL-MAIRCA model for smarter, greener supply chains."

In today's fast-paced global economy, logistics centers are the unsung heroes that keep goods flowing smoothly from manufacturers to consumers. These hubs are more than just warehouses; they are complex ecosystems that integrate various modes of transportation, including roads, railways, and waterways. The strategic location of a logistics center can make or break a company's ability to compete, affecting everything from transportation costs to delivery times and overall profitability.

Choosing the right location for a multimodal logistics center is a multifaceted challenge. It involves juggling numerous factors, from infrastructure availability and environmental impact to economic growth potential and regulatory compliance. Traditional methods often fall short in capturing the intricate relationships between these variables, leading to suboptimal decisions that can haunt businesses for years to come.

Fortunately, innovative approaches are emerging to tackle this complexity. One such approach is the DEMATEL-MAIRCA model, a cutting-edge decision-making framework that combines the strengths of two powerful techniques: the Decision-Making Trial and Evaluation Laboratory (DEMATEL) and the Multi-Attributive Ideal-Real Comparative Analysis (MAIRCA). This hybrid model offers a sustainable and holistic way to evaluate potential locations, ensuring that businesses can make informed choices that align with their economic and environmental goals.

Decoding the DEMATEL-MAIRCA Model: A Step-by-Step Guide

Futuristic logistics center integrating transport modes for sustainable supply chains.

The DEMATEL-MAIRCA model is a structured, two-phase process designed to identify the optimal location for a multimodal logistics center. It begins by mapping the complex interdependencies between various location criteria, then uses this understanding to rank potential sites based on their suitability. Let's break down the key steps involved:

Phase 1: Weighing the Criteria with DEMATEL. The first phase uses the DEMATEL method to determine the weight coefficients of the criteria. The steps are:

Gather Expert Opinions: Collect insights from logistics professionals and stakeholders to identify relevant location criteria and their interrelationships.
Construct the Average Matrix: Aggregate expert opinions into an average matrix that represents the collective understanding of criterion relationships.
Normalize the Matrix: Transform the average matrix into a normalized initial direction matrix to facilitate comparison across different criteria.
Calculate Total Relation Matrix: Determine the total relation matrix to capture the overall influence of each criterion on the others.
Calculate Sums of Rows and Columns: Compute the sums of rows and columns in the total relation matrix to quantify the total influence and impact of each criterion.
Determine Weight Coefficients: Calculate the weight coefficients of each criterion based on its total influence and impact.
Normalize Weight Coefficients: Normalize the weight coefficients to ensure that they sum to one, providing a clear and consistent basis for comparison.

Phase 2: Evaluating Locations with MAIRCA. With the weighted criteria in hand, the second phase employs the MAIRCA method to evaluate potential locations. The steps are:

The Future of Logistics: Sustainable, Smart, and Strategic

The DEMATEL-MAIRCA model represents a significant step forward in the field of logistics, offering a powerful and sustainable approach to location selection. By considering the complex interdependencies between various factors and incorporating stakeholder preferences, this model empowers businesses to make informed decisions that drive efficiency, reduce environmental impact, and enhance their competitive edge. As the global economy continues to evolve, the strategic use of such innovative tools will be essential for navigating the challenges and opportunities that lie ahead. The future of logistics is sustainable, smart, and undeniably strategic.

About this Article -

This article was crafted using a human-AI hybrid and collaborative approach. AI assisted our team with initial drafting, research insights, identifying key questions, and image generation. Our human editors guided topic selection, defined the angle, structured the content, ensured factual accuracy and relevance, refined the tone, and conducted thorough editing to deliver helpful, high-quality information.See our About page for more information.

This article is based on research published under:

DOI-LINK: 10.1080/1331677x.2018.1506706, Alternate LINK

Title: New Hybrid Multi-Criteria Decision-Making Dematel-Mairca Model: Sustainable Selection Of A Location For The Development Of Multimodal Logistics Centre

Subject: Economics and Econometrics

Journal: Economic Research-Ekonomska Istraživanja

Publisher: Informa UK Limited

Authors: Dragan S. Pamucar, Snezana Pejcic Tarle, Tanja Parezanovic

Published: 2018-01-01

Everything You Need To Know

What is the main purpose of the DEMATEL-MAIRCA model in the context of logistics?

The primary purpose of the DEMATEL-MAIRCA model is to identify the optimal location for a multimodal logistics center. This is achieved through a structured, two-phase process. The model aims to boost efficiency and minimize environmental impact, supporting sustainable practices within the logistics sector. By using the model, businesses can make informed decisions that align with both economic and environmental goals.

How does the DEMATEL method contribute to the DEMATEL-MAIRCA model?

The DEMATEL method is the first phase within the DEMATEL-MAIRCA model. It is used to determine the weight coefficients of various location criteria. The process includes collecting expert opinions, constructing an average matrix, normalizing the matrix, calculating a total relation matrix, computing sums of rows and columns, determining weight coefficients, and normalizing the weight coefficients. This detailed process provides a foundation for the subsequent evaluation of potential locations.

What are the key steps involved in the DEMATEL process within the DEMATEL-MAIRCA model?

The DEMATEL process involves several key steps. It starts with gathering expert opinions to identify relevant location criteria and their interrelationships. Then, an average matrix is constructed, and subsequently normalized. A total relation matrix is calculated to capture the overall influence of each criterion. Sums of rows and columns are computed, followed by the determination and normalization of weight coefficients. These steps collectively allow for an accurate assessment of the factors influencing location decisions.

Why is the strategic location of a multimodal logistics center so critical for businesses?

The strategic location of a multimodal logistics center is crucial because it significantly impacts a company's ability to compete. It affects transportation costs, delivery times, and overall profitability. These centers integrate various modes of transportation (roads, railways, waterways), making their location decisions complex. The DEMATEL-MAIRCA model provides a structured approach to evaluate and select the best location for the center considering various interdependent factors, ensuring businesses can make informed choices.

How does the DEMATEL-MAIRCA model ensure a sustainable approach to logistics location selection?

The DEMATEL-MAIRCA model ensures a sustainable approach by considering the complex interdependencies between various factors influencing location choices. The model incorporates expert opinions, environmental impact considerations, and stakeholder preferences to make the process sustainable. This holistic approach helps businesses drive efficiency, reduce environmental impact, and enhance their competitive edge. The method allows for detailed analysis during Phase 1 with DEMATEL, including gathering expert opinions, and during Phase 2, which employs the MAIRCA method to evaluate locations based on weighted criteria.