A Combined Multi-Criteria Decision-Making and Social Cost-Benefit Analysis Approach for Evaluating Sustainable City Logistics Initiatives

Decision making in city logistics (CL) is complex due to the numerous concepts and alternatives, as well as the intricate relationships between measures and effects. This study introduces a novel approach to evaluating urban freight transport (UFT) by combining multi-criteria decision making (MCDM) and social cost-benefit analysis (SCBA). This combination aims to improve decision making for sustainable CL concepts, particularly in reducing externalities in last-mile delivery. The model assesses various CL initiatives and urban consolidation center (UCC) concepts for their impact on UFT externalities. It uses the MCDM for ex ante scenarios assessment and prioritization. Input data were collected through a survey of experts from various sectors, and the Analytic Hierarchy Process (AHP) was applied in the case study of Novi Sad, Serbia. The prioritization highlighted the significance of implementing restrictive regulatory measures, alternative transport modes, and operational optimization within UCC concepts. By estimating capital, operational, and external costs, SCBA was applied to the prioritized UCC concepts, which were then further evaluated using the SCBA outputs. Sensitivity analysis was employed to assess the robustness of the proposed model. This paper offers valuable insights into the potential use of existing tools within a hybrid model to enhance decision making in CL.