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Evaluation of 4PL operating models: A decision making approach based on 2-additive Choquet integral

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Author Info

  • Büyüközkan, Gülçin
  • Feyzioglu, Orhan
  • Sakir Ersoy, Mehmet
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    Abstract

    By being a supply chain integrator who can assemble and manage the resources, capabilities, and technology of its own organization with those of complementary service providers, fourth party logistics (4PL) providers deliver comprehensive supply chain solutions and form an important option for business outsourcing. The adequate design of the partnership between companies in this type of outsourcing activities is essential. In order to support the effective usage of 4PL services, this paper proposes an analytical multiple criteria decision making approach to evaluate 4PL operating models. While decision criteria and their hierarchy were identified, it is observed that there exist interactions, e.g. simultaneous satisfaction of two or criteria is sometimes required. This situation can not be handled with traditional multi-criteria decision making methods which assume criteria independence. 2-additive Choquet integral is appropriate to model criteria interactions by pairs and is used in this study. The proposed framework is applied for a logistics company willing to expand its operations. Finally, an application is provided to demonstrate the potential of the methodology for 4PL operating model selection.

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    File URL: http://www.sciencedirect.com/science/article/B6VF8-4W38RFG-1/2/ee20516191ba9040cd111f3a71de9ec2
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    Bibliographic Info

    Article provided by Elsevier in its journal International Journal of Production Economics.

    Volume (Year): 121 (2009)
    Issue (Month): 1 (September)
    Pages: 112-120

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    Handle: RePEc:eee:proeco:v:121:y:2009:i:1:p:112-120

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    Web page: http://www.elsevier.com/locate/ijpe

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    Keywords: Fourth party logistics (4PL) 4PL operating models Multi-criteria decision making Choquet integral Outsourcing in logistics;

    References

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    1. Marasco, Alessandra, 2008. "Third-party logistics: A literature review," International Journal of Production Economics, Elsevier, vol. 113(1), pages 127-147, May.
    2. Barad, M. & Even Sapir, D., 2003. "Flexibility in logistic systems--modeling and performance evaluation," International Journal of Production Economics, Elsevier, vol. 85(2), pages 155-170, August.
    3. Cruijssen, Frans & Cools, Martine & Dullaert, Wout, 2007. "Horizontal cooperation in logistics: Opportunities and impediments," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 43(2), pages 129-142, March.
    4. Grabisch, Michel, 1996. "The application of fuzzy integrals in multicriteria decision making," European Journal of Operational Research, Elsevier, vol. 89(3), pages 445-456, March.
    5. Marichal, Jean-Luc & Roubens, Marc, 2000. "Determination of weights of interacting criteria from a reference set," European Journal of Operational Research, Elsevier, vol. 124(3), pages 641-650, August.
    6. Swafford, Patricia M. & Ghosh, Soumen & Murthy, Nagesh, 2008. "Achieving supply chain agility through IT integration and flexibility," International Journal of Production Economics, Elsevier, vol. 116(2), pages 288-297, December.
    7. Cliville, Vincent & Berrah, Lamia & Mauris, Gilles, 2007. "Quantitative expression and aggregation of performance measurements based on the MACBETH multi-criteria method," International Journal of Production Economics, Elsevier, vol. 105(1), pages 171-189, January.
    8. Huang, Samuel H. & Keskar, Harshal, 2007. "Comprehensive and configurable metrics for supplier selection," International Journal of Production Economics, Elsevier, vol. 105(2), pages 510-523, February.
    9. Jharkharia, Sanjay & Shankar, Ravi, 2007. "Selection of logistics service provider: An analytic network process (ANP) approach," Omega, Elsevier, vol. 35(3), pages 274-289, June.
    10. Berrah, L. & Mauris, G. & Montmain, J., 2008. "Monitoring the improvement of an overall industrial performance based on a Choquet integral aggregation," Omega, Elsevier, vol. 36(3), pages 340-351, June.
    11. Krakovics, Fabio & Eugenio Leal, José & Mendes Jr., Paulo & Lorenzo Santos, Rafael, 2008. "Defining and calibrating performance indicators of a 4PL in the chemical industry in Brazil," International Journal of Production Economics, Elsevier, vol. 115(2), pages 502-514, October.
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    Cited by:
    1. Feng, Bo & Fan, Zhi-Ping & Li, Yanzhi, 2011. "A decision method for supplier selection in multi-service outsourcing," International Journal of Production Economics, Elsevier, vol. 132(2), pages 240-250, August.

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