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A Framework for Detecting the Proper Multi-Criteria Decision-Making Method Taking into Account the Characteristics of Third-Party Logistics, the Requirements of Managers, and the Type of Input Data

In: Application of Decision Science in Business and Management

Author

Listed:
  • Danijela Tuljak-Suban
  • Patricija Bajec

Abstract

The aim of the paper is to propose a framework for improving the process of choosing an appropriate multi-criteria decision-making (MCDM) method in the selection of a third-party logistics provider (3PLP). A systematic combining process was used, along with two literature reviews, one empirical survey and a case study. A four-step framework was proposed, starting with identifying common criteria that are harmonised to the 3PLP selection process, followed by analysing all aspects of the 3PLP selection problem and the selected MCDM methods in view of common criteria, finishing with a decision tree, divided into seven branches that orient the decision-maker towards his decisions. The paper also contributes to the theory by identifying and evaluating criteria that characterise 3PLP decision-making and by suggesting a suitable order of criteria. A numerical example was implemented to evaluate a proposed framework.

Suggested Citation

  • Danijela Tuljak-Suban & Patricija Bajec, 2020. "A Framework for Detecting the Proper Multi-Criteria Decision-Making Method Taking into Account the Characteristics of Third-Party Logistics, the Requirements of Managers, and the Type of Input Data," Chapters, in: Fausto Pedro Garcia Marquez (ed.), Application of Decision Science in Business and Management, IntechOpen.
    • Handle: RePEc:ito:pchaps:202086
    DOI: 10.5772/intechopen.87222
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    More about this item

    Keywords

    third-party logistics provider (3PLP); multi-criteria decision-making (MCDM) methods; selection process; supply chain;
    All these keywords.

    JEL classification:

    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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