Using fuzzy multiple criterion methods for fourth party logistics criteria selection

Authors:
Jao-Hong Cheng;Shiuann-Shuoh Chen;Yu-Wei Chuang
Affiliations:
Department of Information Management, National Yunlin University of Science and Technology, Douliou City, Yulin Country, Taiwan;Department of Business Administration, National Central University, Jung-li City, Taoyuan, Taiwan;Department of Business Administration, National Central University, Jung-li City, Taoyuan, Taiwan
Venue:
AIKED'08 Proceedings of the 7th WSEAS International Conference on Artificial intelligence, knowledge engineering and data bases
Year:
2008

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Abstract

Fourth party logistics (4PL) company plays the role of integrator, which provides both information technology and supply chain integration capabilities. It not only creates different values of each segment in the supply chain, but also elevates the effects in supply chain management for business. Therefore, how to select an appropriate fourth party logistics company is an important decision for business. Nonetheless, the fourth party logistics is a significant and new issue. Actually, there are not any fourth party logistics companies in the world presently. The purpose of this study is to figure out the evaluation factors and their weights to aid the selection of 4PL for businesses. The primary criteria to evaluate 4PL are established by the literature survey with Fuzzy Delphi Method (FDM), and then Fuzzy Analytic Hierarchy Process (FAHP) is employed to calculate the weights of these criteria, so as to build the Fuzzy Multi-criteria model of 4PL. According to experts' estimations, the most important criteria of the evaluation model about selecting the fourth party logistics company contain sixteen items. In sum, we hope the criteria of the evaluation model to the fourth party logistics company will be able to offer references for industrial circles.