Industrial Engineering, Iran University of Science and Technology (IUST)
The purpose of this paper is to present the possibility of replacing physical unit cost in transportation or distribution problems by an aggregate coefficient, getting qualitative and subjective considerations involved. The model for constructing aggregate cost is a two stage multiple attribute decision-making problems. In the first stage supply points, demand points and routes of transportation are alternatives and have to be weighted against their own attributes. In the second stage, the alternatives are placed as attributes in a new matrix and the unit aggregate costs will be the new alternatives. Some heuristic techniques are developed for tradeoffs between attributes. Experts and decision-makers do tradeoff. The results are compared with the simple physical costs.