Prioritising of warehouse operations performance measures : fuzzy AHP approach

The purpose of this paper is to provide prioritised performance measures in warehouse operations across various industry sectors, based on (i) categorization of performance measures, and (ii) the relative weight of importance among performance categories. Q-sort method is used to group the measures into four categories and fuzzy AHP is used to prioritise each category and its individual performance measures. The result shows that financial category is a dominating performance measure in managing warehouse operations in all the three industries considered (manufacturing, third-party logistics service provider, and retails). Cost of insurance is considered to be powerful measure within financial category across those three industries. It is noted from the analysis of experts' views that till now the mindset of industrial representatives are oriented towards efficiency measures rather than responsive measures. Only retail industry gives due consideration towards responsiveness and flexibility categories. It is recommended that practitioners would consider both responsiveness and flexibility categories of warehouse performance, in order to mitigate supply chain disruptions.