DSS for 3PL provider selection in global supply chain: combining the multi-objective optimization model with experts’ opinions

Abstract

To provide selections of logistics outsourcing providers in a global supply chain, this paper proposes a decision support system (DSS), based on fuzzy analytic network process (FANP) and preemptive fuzzy integer goal programming (PFIGP). For decision-makers, a suitable method for selecting third-party logistics (3PL) is critical under the trends of globalization and specialization. The proposed DSS for 3PL provider selection takes into consideration flexible resource and interactions among providers. When applying multiple attribute decision-making (MADM) to selection of 3PL providers, it is difficult for decision-makers to determine the feasible solution domain under limited resources, especially if the decision problems are NP-complete. Moreover, traditional mathematical programming does not incorporate experts' evaluation of providers. This paper employs FANP to obtain experts' scores of the providers, and then integrates the scores into PFIGP to facilitate selection of a 3PL provider with flexible resources. Finally, this paper uses genetic algorithms to solve the PFIGP. An illustrative example is also given to demonstrate such DSS. The test result shows that the degree of providers' interaction affects the final weight of FANP.

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

“…Kabir [19] integrated the fuzzy analytic hierarchy process (FAHP) and fuzzy TOPSIS methods to assess and select a suitable 3PL provider. Wong [20] suggested a decision support system consisting of pre-emptive fuzzy integer goal programming and the fuzzy analytic network process (FANP) to identify the best 3PL provider in a global supply chain. In another study, Perçin and Min [21] proposed an integrated approach using zero-one goal programming, quality function deployment, and fuzzy linear regression to identify the best 3PL provider for a company in the automobile industry.…”

A multi objective SCOR-Based Decision Alignment for Supply Chain Performance Management

“…In [26], an interactive GP model was created for virtual manufacturing cells procedure, while Mahdavi et al (2011) developed a fuzzy GP method for solving a multi-objective model of production planning in a virtual manufacturing system [27]. Wong developed a Decision Support System (DSS) using fuzzy logic based on expert judgments to select 3PL [28]. Xu et al proposed a multiobjective model to optimize a multi-period SC with stochastic demand using a fuzzy method [29].…”

Logistics Service Provider Selection through an Integrated Fuzzy Multicriteria Decision Making Approach

“…Sheng et al [45] used a method integrating AHP and goal programming to select third-party reverse logistics enterprise. Wong [46] proposed a methodology combining fuzzy AHP and preemptive fuzzy integer goal programming to select third-party LSP in global supply chain. Ç akır et al [8] utilized the fuzzy AHP approach to select thirdparty LSP selection for a medium-sized and growth-oriented fast-moving-consumer-goods (FMCG) company, which is steadily moving towards IT enablement of its supply chain.…”