A Framework for Detecting the Proper Multi-Criteria Decision-Making Method Taking into Account the Characteristics of Third-Party Logistics, the Requirements of Managers, and the Type of Input Data

Abstract

The aim of the paper is to propose a framework for improving the process of choosing an appropriate multi-criteria decision-making (MCDM) method in the selection of a third-party logistics provider (3PLP). A systematic combining process was used, along with two literature reviews, one empirical survey and a case study. A four-step framework was proposed, starting with identifying common criteria that are harmonised to the 3PLP selection process, followed by analysing all aspects of the 3PLP selection problem and the selected MCDM methods in view of common criteria, finishing with a decision tree, divided into seven branches that orient the decision-maker towards his decisions. The paper also contributes to the theory by identifying and evaluating criteria that characterise 3PLP decision-making and by suggesting a suitable order of criteria. A numerical example was implemented to evaluate a proposed framework.

Integration of AHP and GTMA to Make a Reliable Decision in Complex Decision-Making Problems: Application of the Logistics Provider Selection Problem as a Case Study

“…In past studies, a significant contribution to science has been made in this field, which is, of course, indispensable. However, the aspect of the user of these methods was very obviously overlooked in practice, which is a matter of concern, as an e-survey [6] has shown that many companies are addressing LP selection decisions on their own. Thus, decision makers, managers, and practitioners face a great dilemma about which method to choose in decision-making problems since they do not have a deep knowledge of the methods, lack experience regarding the use of methods, and do not know all the methods available.…”