Hub location selection of third-party logistics service on multiple countries consolidations for ocean freight forwarders by using fuzzy multiple criteria decision- making (MCDM) approach

Abstract

Since a good location will effectively help expand agglomeration economy effects and increase competitive advantages, there is a need to proceed with a study on effects from various perspectives and evaluate proper location objectively. Hence, the main purpose of this paper is to use a fuzzy multiple criteria decision-making (MCDM) approach to select a hub location of third-party logistics service on multiple countries consolidations for ocean freight forwarders. At first, some concepts and methods used to develop a fuzzy MCDM algorithm are briefly introduced. Secondly, a step-by-step fuzzy MCDM algorithm is proposed. Finally, a numerical example with a hierarchy structure of seven criteria, forty-two sub-criteria, and three alternatives is illustrated by using the proposed fuzzy MCDM approach. Furthermore, this paper with its methods can be employed as a practical tool for business application, as well as the market players can modify this algorithm to evaluate hub location selection in the future. The proposed model not only releases the limitation of crisp values, but also facilitates its implementation as a computer-based decision support system in a fuzzy environment. Key words: Hub location selection, multiple countries consolidation, third-party logistics service provider, fuzzy multiple criteria decision-making (MCDM).