An Integrated Model of AHP and TOPSIS for 3PL Evaluation

Abstract

The performance measurement of third party logistics (3PL) is very important to improve the customer service level and hence efficiency of supply chain. This is a multi-criteria decision making problem which incorporates various supply chain parameters. A framework for performance measurement of 3PL providers has been developed in this paper, which uses AHP (Analytic Hierarchy Process) and TOPSIS (Technique for Order Preference by Similarity to Ideal Solution). The main contribution of this paper includes application of integrated AHP and TOPSIS framework to measure the relative strength of the 3PLs. This paper may help to supply chain manager to select a best 3PL and to improve the performance of existing 3PL

Keywords

3PL Performance Measurement AHP and TOPSIS

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