APPLICATION OF PFAHP-GTOPSIS METHODS FOR THIRD-PARTY LOGISTICS PROVIDER SELECTION

Abstract

Companies are now considering the option of outsourcing as hedges cost and increase productivity by concentrating on their core skills to update their supply chains due to the competition in global markets, the use of higher-quality products, and rising customer demands. They must carefully select and identify which company to collaborate with before outsourcing their numerous logistics-related tasks to Third-Party Logistics Providers (3PLP). However, the existence of uncertainties and human influence in 3PLP selection problems leads to the usage of fuzzy or related set theories. By incorporating Multi-Criteria Decision Making (MCDM) methods with fuzzy numbers and grey numbers, practical tools can be composed to address the imprecision of subjective judgments. From this perspective, an integrated MCDM model is proposed to provide insight into the 3PLP evaluation and selection. The model comprises an integrated framework with Pythagorean fuzzy numbers and grey numbers. The proposed model has applied a 3PLP a company in the food industry to fulfill customer orders. The evaluation criteria weights are calculated using the Pythagorean Fuzzy Analytic Hierarchy Process (PFAHP) method, and the 3PLPs are ranked using the grey Technique for Order Preference by Similarity to Ideal Solution (GTOPSIS) methods to find the best 3PLP. The analyses and findings concluded that cost, service quality, and on-time delivery were the three criteria that had the greatest influence