Abstract
Article history: Received October 28, 2015 Received in revised format November 28, 2015 Accepted March 22, 2016 Available online March 24, 2016 In a competitive environment many companies usually outsource their logistics functions to the Third Party Logistics (TPL) providers to focus on their core businesses. However, the selection of proper TPL provider is not an easy task because of conflicting quantitative and qualitative criteria. This study presents an integrated model based on three well-known methods Decision Making Trial and Evaluation Laboratory (DEMATEL), Analytical Network Process (ANP) and Data Envelopment Analysis (DEA) for the evaluation and selection of TPL providers. DEMATEL computes the effects between selection criteria while ANP derives the weights of each criterion related with TPL providers’ selection problem. Finally DEA presents a mathematical model for ranking TPL providers alternatives with respect to various criteria. The application of integrated model is demonstrated with a case study. The novelty of this study comes from the fact that there is no research in the literature integrating DEMATEL, ANP and DEA for the TPL selection problems. © 2016 Growing Science Ltd. All rights reserved.
Highlights
Nowadays, many companies focus on their core businesses for their competitiveness and outsource non-core businesses in order to meet the needs of the market (Li et al, 2012)
This study presents an integrated model based on three well-known methods Decision Making Trial and Evaluation Laboratory (DEMATEL), Analytical Network Process (ANP) and Data Envelopment Analysis (DEA) for the evaluation and selection of Third Party Logistics (TPL) providers
This study presents the integration of DEMATEL, Analytic Network Process (ANP) and DEA methods which consider various criteria to be taken into account in this issue
Summary
Many companies focus on their core businesses for their competitiveness and outsource non-core businesses in order to meet the needs of the market (Li et al, 2012). Thakkar et al (2005) proposed a hybrid approach of Interpretive Structural Model (ISM) and ANP method for the selection of TPL providers. Liou and Chuang (2010) proposed a hybrid model based on DEMATEL (Decision Making Trial and Evaluation Laboratory), ANP and VIKOR (Multi-criteria Optimization and Compromise Solution) methods for TPL selection. Jayant et al (2014) developed hybrid approach based on AHP and TOPSIS methods for the selection and evaluation of TPRL providers. Liu and Wang (2009) proposed an integrated fuzzy approach for the evaluation and selection of TPL providers. They used fuzzy Delphi method to identify important evaluation criteria applied fuzzy inference method to eliminate unsuitable TPL providers. I indicates identity matrix and this equation is obtained from following operations:
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