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

  • Authors:

  • Jui-Tsung Wong

  • Affiliations:

  • Department of International Business, Shih Chien University, Kaohsiung, Taiwan, Republic of China

  • Venue:
  • Journal of Intelligent Manufacturing
  • Year:
  • 2012

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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.