SavedAdd your journal

Journals / Gazi University Journal of Science / 2020 / Cilt: 33 - Sayı: 2

3PL Service Provider Selection with a Goal Programming Model Supported with Multicriteria Decision Making Approaches

Merve AHISKALI
Evrencan OZCAN
Pages
413–427
Publication Date
2022-10-19
DOI
—
🏛️Bibliographic metadata and full text access for this article are provided via DergiPark.
DergiPark Record ↗
✨

AI Summary & Key Takeaways

AI Insight
⚡ TL;DR(Too Long; Didn't Read)

As a result of the solution of the problem with thismethodology, an improvement is achieved about 7% for the rate of delivery on time, 33% for bid- bill consistency rate, and 29% for the problematic delivery rate.

📌 3 Key Takeaways

🎯
Objective & Hypothesis:In this study, third-party logistics (3PL) service provider selection problem is handled for aforeign trade company that exports the products with high quality level obtained by outsourcing,and who has problems regarding both cost, delivery quality and delivery time.
📊
Key Findings & Data:In this direction, 7criteria are determined for effective evaluation of the performance of the 5 logistics serviceproviders the company is working for and the determination of the most suitable 3PL serviceprovider according to the property of the orders (quantity, mode of conveyance, transportationchannel, etc.).
💡
Conclusion & Impact:As a result of the solution of the problem with thismethodology, an improvement is achieved about 7% for the rate of delivery on time, 33% for bid- bill consistency rate, and 29% for the problematic delivery rate.
🔬Design:Modeling & Simulation
📍Scope:Comprehensive Sample
⚙️Variables:Domain Parameters

Abstract

In this study, third-party logistics (3PL) service provider selection problem is handled for aforeign trade company that exports the products with high quality level obtained by outsourcing,and who has problems regarding both cost, delivery quality and delivery time. In this direction, 7criteria are determined for effective evaluation of the performance of the 5 logistics serviceproviders the company is working for and the determination of the most suitable 3PL serviceprovider according to the property of the orders (quantity, mode of conveyance, transportationchannel, etc.). The priority levels of service providers are calculated by using these criteria in thecombination of Analytic Hierarchy Process (AHP), and Technique for Order Preference bySimilarity to Ideal Solution (TOPSIS). Then, a goal programming (GP) model that answers thequestion of which service provider to choose for which order, considering these priority valuesand the 12 system constraints and 5 objectives that the company encountered in real life isproposed. This model is the first one proposed in the literature for the selection of 3PL serviceproviders for multimodal international transport with consistent results. The model is solved forthe current 10 orders using the last 1-year data of the company and the most appropriate 3PLservice provider combination is obtained. As a result of the solution of the problem with thismethodology, an improvement is achieved about 7% for the rate of delivery on time, 33% for bid- bill consistency rate, and 29% for the problematic delivery rate.

🔖

Cite This Article

AHISKALI, M., OZCAN, E. (2022). 3PL Service Provider Selection with a Goal Programming Model Supported with Multicriteria Decision Making Approaches. Gazi University Journal of Science, Cilt: 33 - Sayı: 2, 413–427. https://ajindex.com/articles/521285

📄 Full Text PDF Viewer

📄

PDF görüntüleyici hazırlanıyor...

References (9)

  1. Rantasila, K. and Lauri, O., “Measurement of National-Level Logistics Costs and Performance”, ITF Discussion Paper, No.2012-4:10-14, (2012)
  2. National Skills Development Corporation (NSDC). Human Resource and Skill Requirements Report (2017-22): https://www.voced.edu.au/content/ngv%3A78369, (2018)
  3. Aguezzoul, A. and Pires, S., “3PL performance evaluation and selection: A MCDM method”, Suppl. Ch. Forum Int. J., 17(2): 87-94, (2016)
  4. Ahıskalı, M., “A Goal Programming Model Supported with Multi-Criteria Decision Making Approachs for Third Party Logistics Service Provider Selection Problem”, M.Sc.Thesis, Kırıkkale University, Kırıkkale, 10-15, (2018)
  5. Göl, H. and Çatay, B., “Third-party logistics provider selection: insights from a Turkish automotive company”, Suppl. Ch. Manage. Int. J., 12(6): 379-384, (2007)
  6. Soh, S.H., “A decision model for evaluating third-party logistics providers using fuzzy analytic hierarchy process”, Afr. J. Bus. Manage., 4(3): 339-349, (2010)
  7. Vijayvargiya, A. and Dey, A.K., “An analytical approach for selection of a logistics provider”, Manage. Decis., 48(3): 403-418, (2010)
  8. Barker, T.J. and Zabinsky, Z.B., “A multicriteria decision making model for reverse logistics using analytical hierarchy process”, Omega, 39(5): 558-573, (2011)
  9. Daim, T.U., Udbye, A. and Balasubramanian, A., “Use of analytic hierarchy process (AHP) for selection of 3PL providers”, J. Manuf. Techn. Manage., 24(1): 28-51, (2012). [10]Hwang, B., Chen, T. and Lin, J., “3PL selection criteria in integrated circuit manufacturing industry in Taiwan”, Suppl. Ch. Manage. Int. J., 21(1): 103-124, (2016). [11]Gürcan, Ö.F., Yazıcı, İ., Beyca, Ö.F., Arslan, Ç.Y. and Eldemir, F., “Third party logistics (3PL) provider selection with AHP application”, Proc. Soc. Behav. Sci., 235(1): 226-234, (2016). [12]Yuen, K.K.F., “Towards Logistics Service Provider Selection Strategy Using Primitive Cognitive Network Process”, 10th International Conference on Service Systems and Service Management, Hong Kong, 416-418, (2013). [13]Jharkharia, S. and Shankar, R., “Selection of logistics service provider: an analytic network process (ANP) approach”, Omega, 35(3): 274-289, (2007). [14]Özbek, A. and Eren, T., “Selection of third-party logistics (3PL) firms with analytical network process approach”, Atatürk Üni. J. Econ. Admin. Sci., 27(1): 95-113, (2013). [15]Qureshi, M.N., Kumar, D. and Kumar, P., “Selection of Potential 3PL Services Providers Using TOPSIS w