A Fuzzy Integrated Approach for Evaluating Third-Party Logistics

Abstract

Abstract-Third-party logistics (3PL) selection is one of the most important decisions for companies to outsource some part of their activities and concentrate more on its own core competencies. Because of the significant role of 3PL in total performance of the supply chain, its selection is a critical act. This is the most meaningful motivation to generate new solutions to select the best 3PL using appropriate criteria. These criteria and their weights are often full of ambiguities. This makes fuzzy logic a more suitable approach to solve this problem. In this paper, we aim to present a new evaluation method using a combined MCDM approach. Fuzzy weighted and credibility theories are utilized to determine the weights of criteria, and the graph theory and ABC inventory classification are used to priorities alternatives. To demonstrate applicability of the proposed approach, a real case 3PL selection problem is provided.