Third Party Logistics Service Selection using Fuzzy Multiple Attribute Decision – Making System

Abstract

This study models the selection of third party logistics service provider (3PL) process considering comprehensive criteria and fuzzy nature of such problems. Criteria are identified and selected with respect to various aspects of logistics management, and existing vagueness in their behaviours and their relational preferences. Multiple attribute decision-making (MADM) approach and fuzzy methodology are applied. Based on a wide review of previous research, a fuzzy MADAM (FMADM) procedure is developed. Accordingly, especial algorithm in applying FMADM to 3PL selection problems is defined. A numerical example supports the developed procedure. Then, a real-world case study is explained and its 3PL selection problem is discussed. Results show reliability and efficiency of the model.