Journal Search Engine
Search Advanced Search Adode Reader(link)
Download PDF Export Citaion korean bibliography PMC previewer
ISSN : 2233-4165(Print)
ISSN : 2233-5382(Online)
Journal of Industrial Distribution & Business Vol.9 No.3 pp.7-17

Locational Preference of Last Mile Delivery Centres: A Case Study of Thailand Parcel Delivery Industry

Chompoonut Amchang*, Sang-Hwa Song**
* First Author, Graduate School of Logistics, Incheon National University, Incheon, Korea.
** Corresponding Author, Professor, Graduate School of Logistics, Incheon National University, Incheon, Korea. Tel: +82-32-835-8181
February 2, 2018. February 27, 2018. March 15, 2018.


Purpose – The purpose of this paper is to improve last mile delivery capability and ensure customers’ satisfaction by approaching an analytic hierarchy process(AHP) and identifying criteria framework to determine locations of last mile delivery centre(LMDC).
Research design, data, and methodology – Traffic congestion and emission policy in cities are barriers of last mile delivery in dense areas. The urban consolidation centre(UCC) cannot increase last mile delivery efficiency in dense cities because of their space and traffic limitation. In this paper, we develop a case to improve last mile delivery efficiency and to ensure customers’ satisfaction by concentrating on LMDC. In addition, AHP has been applied to identify criteria framework and determine LMDC locations. The weighted priorities are derived from parcel delivery industry experts and have been calculated using Expert Choice software.
Results – The framework criteria have assisted decision makers to place LMDC in a dense area to enhance customer’s satisfaction with last mile delivery service.
Conclusions – AHP has provided ranking framework criteria of LMDC potential for parcel delivery industry. The LMDC helps by improving last mile delivery efficiency to final destination amids conditions of CO2 emissions, traffic congestion, and pollution problems. It especially concerns delivery service activities when delivering parcels to customers rather than UCC.

JEL Classifications: L9, L91, R41, R53.





    1. Al-Harbi, K. M. A. S.(2001). Application of the AHP in project management. International Journal of Project Management, 19(1), 19–27. S0263-7863(99)00038-1
    2. Anand, N., Quak, H., Duin, R., & Tavasszy, L.(2012). City Logistics Modeling Efforts: Trends and Gaps - A Review. Procedia - Social and Behavioral Sciences, 39, 101–115.
    3. Arvidsson, N., & Pazirandeh, A.(2017). An ex ante evaluation of mobile depots in cities: A sustainability perspective. International Journal of Sustainable Transportation, 11(8), 623–632.
    4. Awasthi, A., & Chauhan, S. S.(2011). A hybrid approach integrating Affinity Diagram, AHP and fuzzy TOPSIS for sustainable city logistics planning. Applied Mathematical Modelling, 36(2), 573–584.
    5. Awasthi, A., Chauhan, S. S., & Goyal, S. K.(2011). A multi-criteria decision making approach for location planning for urban distribution centers under uncertainty. Mathematical and Computer Modelling, 53(1–2), 98–109. 2010.07.023
    6. Badri, M.(1999). Combining the analytic hierarchy process and goal programming for global facility location-allocation problem. International Journal of Production Economics, 62(3), 237–248.
    7. Birgün, S., & Güngör, C.(2013). A Multicriteria Call Center Site Selection by Hierarchy Grey Relational Analysis. Journal of Aeronautics and Space Technologies, 7(1), 45–52. s40690-014-0004-2
    8. Bouhana, A., Chabchoub, H., Abed, M., & Fekih, A.(2013). A Multi-Criteria Decision Making Approach Based On Fuzzy Theory and Fuzzy Preference Relations For Urban Distribution Centers’ Location Selection Under Uncertain Environments. IEEE, 556–561.
    9. Chen-Tung, C.(2001). A fuzzy approach to select the location of the distribution center. Fuzzy Sets and Systems, 118, 65–73. -0114(98)00459-X
    10. Choi, I. S., & Lee, S.(2012). A study on the Regulatory Environment of the French Distribution Industry and the Intermarket Management Strategies. Journal of Industrial Distribution & Business, 1(3–1), 7–16.
    11. Choi, B. N., & Yang, H. C.(2018). A Study on Revitalization of Revenue through Difference of Consumer Perception of Characteristics of Mobile Social Commerce. The East Asian Journal of Business Management, 8(1), 31-38. 10.13106/eajbm.2018.vol8.no1.31
    12. Elevli, B.(2014). Logistics Freight center locations decision by using Fuzzy-PROMETHEE. Transport, 29(4), 412–418. https://10.3846/16484142.2014.983966
    13. Hwang, H. J., & Lee, S. M.(2011), A study on transferring the effects of brand reputation and level of service satisfaction of an offline channel company when it is expanding to an online distribution channel. The Journal of Distribution Science, 9(2), 31-36.
    14. Kayikci, Y.(2010). A conceptual model for intermodal freight logistics centre location decisions. Procedia - Social and Behavioral Sciences, 2, 6297–6311.
    15. Kim, J. J.(2017). The Effects of Elderly(Senior) Buying Factors and Satisfaction on Retailer's Online Shopping. The Journal of Distribution Science, 15(7), 43-52.
    16. Kuo, M. S.(2011). Optimal location selection for an international distribution center by using a new hybrid method. Expert Systems with Applications, 38(6), 7208–7221. 2010.12.002
    17. Lee, H. J.(2017). The Differential Factors Influencing Online & Mobile Shopping Behavior. The Journal of Distribution Science, 15(9), 27-36.
    18. Lee, U. K., & Feng, Z.(2015). The Effect of Essential Online Elements on Consumer Purchase Intention: Insights from a Taobao Perspective. The Journal of Distribution Science, 13(5), 15-22.
    19. Leesa-Nguansuk, S.(2016, July 7). Bigger slice for e-commerce. Bangkok Post Newspaper Section Business. Retrieved February 25, 2017 from /bigger-slice-for-e-commerce
    20. Mackean, G.(2015). Sustainable city logistics in practice: consolidated approach in London to streamline delivery processes. Retrieved February 25, 2017 from +consolidation+++%09center
    21. Mahmud, S., Rayhan, D. S. A., & Ahamed, T.(2016). Facility Location Selection For Seasonal Product: A Case Study for New Business and a Comparative Study of AHP and ANP. International Journal of Scientific & Technology Research, 5(5), 239-245.
    22. Myers, J.(2016). The World’s 10 largest cities by 2030. Retrieved February 25, 2017 from 10-largest-cities-by-2030/
    23. Nathanail, E., Gogas, M., & Adamos, G.(2016). Assessing the Contribution of Urban Freight Terminals in Last Mile Operations. Transport and Telecommunication, 17(3), 231–241.
    24. National Statistical Office.(2015). The 2015 Core Social Indicators. Thailand.
    25. Olsen, G., Gergele, O., Ghee Chua, S., & Bartolucci, F.(2015). Lifting the Barriers to E-Commerce in ASEAN. Retrieved February 25, 2017 from
    26. Paleie, I., & Lalic, B.(2009). Analytical hierarchy process as a tool for selecting and evaluating projects. International Journal of Simulation Modelling, 8(1), 16–26.
    27. Phuong, N. N. D., & Dat, N. T.(2017). The Effect of Country-of-Origin on Customer Purchase Intention: A Study of Functional Products in Vietnam. The Journal of Asian Finance, Economics and Business, 4(3), 75-83. vol4.no3.75
    28. Prashar, S., Verma, P., Parsad, C., & Sai Vijay, T.(2015). Factors Defining Store Atmospherics in Convenience Stores: An Analytical Study of Delhi Malls in India. The Journal of Asian Finance, Economics and Business, 2(3), 5-15. 10.13106/jafeb.2015.vol2.no3.5.
    29. Rahman, M., Ismail, Y., Albaity, M., & Isa, C. R.(2017). Brands and Competing Factors in Purchasing Hand Phones in the Malaysian Market. The Journal of Asian Finance, Economics and Business, 4(2), 75- 80.
    30. Saaty, T. L.(2008). Decision making with the analytic hierarchy process. International Journal of Services Sciences, 1(1), 83. 2008.017590
    31. Sai Vijay, T., Prashar, S., & Parsad, C.(2015). Selecting a Web Portal for Online Shopping: A Conceptual Approach Using Interpretive Structural Modeling. The East Asian Journal of Business Management, 5(4), 37-46.
    32. Singh, D. P.(2014). Online Shopping Motivations, Information Search, and Shopping Intentions in an Emerging Economy. The East Asian Journal of Business Management, 4(3), 5-12.
    33. Su, S., & Youn, M. K.(2011). Using Huff Model for Predicting the Potential Chinese Retail Market. The East Asian Journal of Business Management, 1(1), 9-12.
    34. Subramanian, N., & Ramanathan, R.(2012). A review of applications of Analytic Hierarchy Process in operations management. International Journal of Production Economics, 138(2), 215–241.
    35. Tadić, S., Zečević, S., & Krstić, M.(2014). A novel hybrid MCDM model based on fuzzy DEMATEL, fuzzy ANP and fuzzy VIKOR for city logistics concept selection. Expert Systems with Applications, 41(18), 8112–8128.
    36. Taniguchi, E., Thompson, R. G., Yamada, T., & van Duin, R.(2001). City Logistics: Network Modelling and Intelligent Transport Systems. Netherlands: Elsevier Science Ltd.
    37. THE WORLD BANK.(2015). Urbanization in Thailand is dominated by the Bangkok urban area. Retrieved May 9, 2016 from news/feature/2015/01/26/urbanization-in-thailand-is-do minated-by-the-bangkok-urban-area
    38. Tomić, V.(2014). The selection of logistic centers location using multi-criteria comparison: Case study of the Balkan Peninsula. Acta Polytechnica Hungarica, 11(10), 97-113.
    39. Tuğba Turğut, B., Taş, G., Herekoğlu, A., Tozan, H., & Vayvay, O.(2011). A fuzzy AHP based decision support system for disaster center location selection and a case study for Istanbul. Disaster Prevention and Management, 20(5), 499–520. 10.1108/09653561111178943
    40. UN-Habitat.(2015). Towards the development of International Guidelines on Urban and Territorial Planning. Retrieved February 25, 2017 from
    41. Van Rooijen, T., & Quak, H.(2010). Local impacts of a new urban consolidation centre - The case of In Procedia - Social and Behavioral Sciences, 2, 5967–5979. 10.1016/j.sbspro.2010.04.011
    42. Wang, Y., Jung, K. A., Yeo, G. T., & Chou, C. C.(2014). Selecting a cruise port of call location using the fuzzy-AHP method: A case study in east asia. Tourism Management, 42, 262-270. 10.1016/j.tourman.2013.11.005
    43. Yang, J., & Lee, H.(1997). An AHP decision model for facility location selection. Facilities, 15(9/10), 241– 254.
    44. Zahedi, F.(1986). The Analytic Hierarchy Process: A Survey of the Method and Its Applications. Interfaces, 16(4), 96–108.
    45. Zak, J., & Węgliński, S.(2014). The selection of the logistics center location based on MCDM/A methodology. Transportation Research Procedia, 3, 555–564.