Evaluation of customs, infrastructure and logistics services with multi-criteria decision-making methods: A comparative analysis for the top 10 countries in the logistics performance index

Abstract

Purpose- The aim of this study is to examine the performance of customs, infrastructure and logistics services of the countries ranked in the top 10 in the Logistics Performance Index (LPI) ranking in 2023 with Multi-Criteria Decision Making Methods (MCDM) and to rank and compare them. The World Bank's LPI criteria and weights were taken into consideration while determining the criteria considered within the scope of the study. Methodology- When employing the MCDM methods, various elements are taken into account during the decision-making process, and options are graded in accordance with these criteria. By taking into account the importance of many criteria and the performance of alternatives, MCDM techniques provide researchers with an organized and objective method for making difficult judgments. In this study Topsis and Edas methods, which are among the MCDM methods, were used to rank the countries. Findings- When the results of the analysis are summarized, it is observed that the first three ranks differ from the results of the LPI report. According to the Topsis method, Finland ranks first, Singapore ranks second and Austria ranks third. According to the Edas method, Singapore and Finland ranked in the first two places as in the LPI 2023 report, while Switzerland ranked third. The findings of the study show that the rankings may be different even when the criteria and criteria weights used within the scope of the analysis are the same in MCDM methods. Conclusion- The findings demonstrate that, even though the criteria and weights employed within the parameters of the study are the same, the rankings in MCDM approaches may differ. This is due to the possibility of various computation strategies or theoretical underpinnings for the procedures being used. The results of this study can therefore be applied to assist decision-makers in this field and improve a country's logistics performance. By illustrating the utility of MCDM techniques in making such decisions, it also makes an important contribution to ongoing research in this field. Keywords: Logistics performance, LPI, Multi-Criteria Decision Making, MCDM, Edas, Topsis. JEL Codes: D61, D91, L91