Multi criteria decision-making methodologies find application
in a wide area. Several methodologies developed for this purpose
are employed according to the structure of decision problem and
the preferences of decision maker. Firstly, in this study; comparative
analysis of the three most widely used basic methodologies,
namely AHP, TOPSIS and ELECTRE has been conducted and basic
characteristics of these methods have been displayed. Then, the
problem of selecting warehouse location, is one of the basic issues
of logistics management, which is one area where multi criteria
decision making is most widely used has been elaborated. Warehouse
location problem is examined with the case study in retail
sector. TOPSIS and ELECTRE methodologies are applied for solution
of this problem. However, when using these methods, criteria have
been evaluated parallel to two basic purposes of maximization and
minimization; the fact has been ignored that the criteria like stock
holding capacity had to define a certain lower limit, an optimum
value and an upper limit. At this point, Grey Theory was applied
to the problem of selecting warehouse location for the purpose
of correcting the deficiency of TOPSIS and ELECTRE methods. Results
obtained from TOPSIS, ELECTRE and Grey Theory are presented
in Table 10. The values in the table express the preference
ranking of warehouse alternatives depending on the determined
method.