Evaluating the Logistics Performance Index of European Union Countries: An Integrated Multi-Criteria Decision-Making Approach Utilizing the Bonferroni Operator

Abstract

The evaluation of the Logistics Performance Index (LPI), as computed by the World Bank, incorporates six equally weighted criteria to ascertain the overall performance scores of countries globally. This study aims to scrutinize the impact of the weighting coefficients of criteria on the computation of the total LPI scores, employing a selection of Multi-Criteria Decision Making (MCDM) methods. The Criteria Importance Through Intercriteria Correlation (CRITIC) and Full Consistency Method (FUCOM) methods were utilized to determine the weighting coefficients, while the Measurement of Alternatives and Ranking according to Compromise Solution (MARCOS) method was employed for ranking the European Union member states. The findings reveal that Finland emerges as the top-ranked nation upon application of the integrated MCDM model. A comparative analysis was conducted, incorporating three additional MCDM methods to assess the robustness of the ranking. Furthermore, a sensitivity analysis was performed, generating sixty novel scenarios to examine the effects of variations in the criteria weighting coefficients. This analysis confirmed the influence of these coefficients on the ultimate ranking of the nations. The research underscores the significance of criteria weightings in the evaluation of the LPI and provides insights into the stability of the rankings under different weighting scenarios.

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“…The CRITIC technique evaluates all information about the criteria and determines the criterion weights through standard deviation and correlation processes [99][100][101]. This technique provides a more comprehensive result since it takes other criteria into account; thus, this advantage has enabled this technique to be integrated into studies more popularly than other objective techniques.…”

Selection of a Green Contractor for the Implementation of a Solar Power Plant Project

“…When conducting a comparative analysis, the same initial FR decision matrix and the same weights were taken, only the ranking with conducted using other multi-criteria methods. This analysis has become regular in studies in which these methods are applied [56]. The goal of this analysis is to determine if the steps applied from different FR methods result in a different ranking order of contractors.…”