Evaluation of third‐party logistics (3PL) providers by using a two‐phase AHP and TOPSIS methodology

Purpose – Third‐party logistics (3PL) provider selection has gained great attention in logistics management literature. The purpose of this paper is to provide a good insight into the use of a‐two‐phase analytical hierarchy process (AHP) and technique for order preference by similarity to ideal solution (TOPSIS) approach that is a multi‐criteria decision‐making methodology in the evaluation of 3PL providers.Design/methodology/approach – In this paper, after the selection criteria of 3PL providers are determined by modified Delphi method, the weights of criteria have been calculated by applying the AHP method. The TOPSIS method is then employed to achieve the final ranking results. And an actual case example is presented to clarify the methodology. Sensitivity analysis is also given to demonstrate how sensitive the proposed model is to changes in the weights of different main criteria.Findings – This model provides decision makers with a simple, flexible, and easy‐to‐use approach to evaluate potential 3PL ...

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