Abstract

Due to the complexity and uncertainty of third-party logistics (3PL) provider selection circumstances, the research on the hybrid multi-criteria decision-making (HMCDM) method with fuzzy hesitation information is becoming more and more important. Based on symmetry principles, both the objectivity of the decision information and the subjectivity of decision makers’ (DMs) preferences should be considered in the HMCDM method. In this paper, a novel interactive decision-making method to deal with the 3PL provider selection problem of hesitant fuzzy sets, intuitionistic fuzzy sets and real numbers is developed. We first investigate the positive and negative ideal solutions of the alternative and the satisfaction degree of the DMs under hybrid multi-criteria circumstances. Then, the interactive HMCDM models based on satisfaction degrees are established, which can use objective decision information to rank alternatives and, symmetrically, the preference information of the DMs is also taken into account. DMs can modify their preference information using the models and thus make the most reasonable selection of 3PL provider. Finally, the case analysis and sensitivity analysis show that the change of parameter and the setting of the satisfaction lower limit will not affect the optimal rank of alternatives, and the feasibility of the proposed method is confirmed.

Highlights

  • With the rapid development of logistics management and practice, logistics outsourcing has already become an important way to reduce cost and improve service level for most manufacturing enterprises [1,2]

  • Many of the main multi-criteria decision-making (MCDM) methods have been used in 3PL provider selection, including Delphi [5,6], analytic hierarchy process (AHP) [7,8], fuzzy analytic hierarchy process (FAHP) [9,10], grey relational analysis (GRA) [11,12], data envelopment analysis (DEA) [13,14], technique for order preference by similarity to an ideal solution (TOPSIS) [15,16,17], entropy weight-TOPSIS [18], and multi-criteria optimization and compromise solution (VIKOR) [19,20]

  • A new limit of satisfaction should be set and the interactive hybrid multi-criteria decision-making (HMCDM) model should be reestablished until the optimal weights can be solved by the model, and the ideal satisfaction degree for the alternative Xi under the criteria Y j can be obtained

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Summary

Introduction

With the rapid development of logistics management and practice, logistics outsourcing has already become an important way to reduce cost and improve service level for most manufacturing enterprises [1,2]. Sakawa [55] first designed an interactive multi-objective 0–1 program with fuzzy numbers to reflect the preferences of the DMs. The interactive decision-making method has attracted more and more scholars’ attention recently, whose main results have focused on a single type of decision information, such as real numbers [56], triangular fuzzy numbers [57], linguistic variables [58,59], intuitionistic fuzzy sets [60], hesitant fuzzy sets [61] and probability hesitant fuzzy sets [62]. The proposed interactive method can solve the HMCDM problem under hybrid multi-criteria with hesitant fuzzy sets This method can directly use the original decision information to determine the weight and rank of the alternatives, so as to avoid the information loss caused by different criterion type conversions.

Selection Criteria for 3PL Providers
Related Definitions
Description of a HMCDM Problem
Setting the Ideal Solution of Hybrid Multi-Criteria
Interactive Decision-Making Process
Case Study
Sensitivity Analysis
Conclusions

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