Decision Making for Third Party Logistics Supplier Selection in Semiconductor Manufacturing Industry: A Nonadditive Fuzzy Integral Approach

Abstract

The semiconductor industry has a unique vertically disintegrated structure that consists of various firms specializing in a narrow range of the value chain. To ensure manufacturing and logistics efficiency, the semiconductor manufacturers considerably rely on 3PL suppliers to achieve supply chain excellence. However, 3PL supplier selection is a complex decision-making process involving multiple selection criteria. The goal of this paper is to identify the key 3PL selection criteria by employing the nonadditive fuzzy integral approach. Unlike the traditional multicriterion decision-making (MCDM) methods which often assume independence among criteria and additive importance weights, the nonadditive fuzzy integral is a more effective approach to solve the dependency among criteria, vagueness in information, and essential fuzziness of human judgment. In this paper, we demonstrate an empirical case that employs the nonadditive fuzzy integral to evaluate the importance weight of selection criteria and choose the most appropriate 3PL supplier. The research result can become a valuable reference for manufacturing companies operating in comparable situations. Moreover, the systematic framework presented in this study can be easily extended to the analysis of other decision-making domains.

A Grey Hybrid Model to Select the Optimal Third-Party Logistics Provider

“…Akman and Baynal [2] combined FAHP and fuzzy TOPSIS to determine the best 3PL provider among seven alternatives for a Turkish tyre company. Hwang and Shen [23] proposed a non-additive fuzzy integral to identify criteria weights and select the best 3PL provider. The six main criteria they considered were information technology, cost, service, performance, quality assurance, and intangibles.…”

A Proposed Approach for Selecting Third Party Logistic Alternatives

“…The AHP program is flexible enough to incorporate both qualitative and quantitative factors. In [22], AHP method was applied to classify hightech manufacturers in Taiwan according to the importance of selection criteria, and it was found that the three criteria groups with the greatest influence on selection are performance, cost and service. Sensitivity analysis helps decision-makers see the effect of potential data changes and/or miscalculations on their pairwise comparisons.…”

Third-Party Logistics

“…Yet, the evaluation of 3PL specialists signifies the subjective criteria for tire fabricating industry [55]. Additionally, affectability examination for checking the overall significance of 3PL administration criteria does not appear in this methodology [141].…”