An Integrated Approach of Fuzzy AHP and Fuzzy TOPSIS to Select Logistics Service Provider

Abstract In India, Manufacturing companies are primarily being concentrated on the production activities which led to drastic improvement of outsourcing logistics process to third party logistics (3PLS), consequently a strong outsourcing logistics can be observed over the next two decades for the development of a company. It may therefore be noted that the enhancement and extrusion are necessary in order to effectively asses risk and opportunities. To achieve this, the best logistics service provider which leads to the growth of organisation and industry has to be selected. The present work aims at the integration of Analytic Hierarchy Process (AHP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) in Fuzzy environment. The integration is carried out with more consistency while evaluating and selecting the best Logistics service provider based on ten coordination criteria viz. Custom Clearance, On Time Delivery, Number of Customers Handled, Placement Percentage, Tracking Status, Service Quality, Solving of Issues, Collecting Proof of Delivery, Region and Price. Fuzzy AHP is used to calculate relative weights of each coordination criterion. Logistics service providers are ranked based on closeness coefficient, calculated for each LSP using Fuzzy TOPSIS. By this method the LSP5 has selected as best logistic service provider among the seven LSP for battery manufacturing company.