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

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

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.

Suggested Citation

  • Büyüközkan, Gülçin & Feyzioglu, Orhan & Sakir Ersoy, Mehmet, 2009. "Evaluation of 4PL operating models: A decision making approach based on 2-additive Choquet integral," International Journal of Production Economics, Elsevier, vol. 121(1), pages 112-120, September.
    • Handle: RePEc:eee:proeco:v:121:y:2009:i:1:p:112-120
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    Cited by:

    1. Meimei Xia & Jian Chen & Xiao-Jun Zeng, 2018. "Decision Analysis on Choquet Integral-Based Multi-Criteria Decision-Making with Imprecise Information," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(02), pages 677-704, March.
    2. Hans-Joachim Schramm & Carolin Nicole Czaja & Michael Dittrich & Matthias Mentschel, 2019. "Current Advancements of and Future Developments for Fourth Party Logistics in a Digital Future," Logistics, MDPI, vol. 3(1), pages 1-17, February.
    3. 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.
    4. Jili Kong & Ziyu Chen & Xiaoping Liu, 2022. "A Review of Logistics Pricing Research Based on Game Theory," Sustainability, MDPI, vol. 14(17), pages 1-20, August.
    5. Vukašin Pajić & Milorad Kilibarda & Milan Andrejić, 2023. "A Novel Hybrid Approach for Evaluation of Resilient 4PL Provider for E-Commerce," Mathematics, MDPI, vol. 11(3), pages 1-26, January.
    6. Xiqin Wen & Mingchao Yan & Jieyu Xian & Rui Yue & Anhua Peng, 2016. "Supplier selection in supplier chain management using Choquet integral-based linguistic operators under fuzzy heterogeneous environment," Fuzzy Optimization and Decision Making, Springer, vol. 15(3), pages 307-330, September.
    7. YU, Jie & Subramanian, Nachiappan & Ning, Kun & Edwards, David, 2015. "Product delivery service provider selection and customer satisfaction in the era of internet of things: A Chinese e-retailers’ perspective," International Journal of Production Economics, Elsevier, vol. 159(C), pages 104-116.
    8. Maria Vodenicharova, 2016. "Application of Quality Management Systems in the Logistics Sector in Bulgaria," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 4, pages 515-528, December.
    9. Meimei Xia & Zeshui Xu & Na Chen, 2013. "Some Hesitant Fuzzy Aggregation Operators with Their Application in Group Decision Making," Group Decision and Negotiation, Springer, vol. 22(2), pages 259-279, March.
    10. Xiaohu Qian & Min Huang & Qingyu Zhang & Mingqiang Yin & Xingwei Wang, 2018. "Mechanism design of incentive-based reverse auctions with loss-averse 3PLs under incomplete attributes," PLOS ONE, Public Library of Science, vol. 13(11), pages 1-20, November.
    11. Zhang, Ling & Zhang, Luping & Zhou, Peng & Zhou, Dequn, 2015. "A non-additive multiple criteria analysis method for evaluation of airline service quality," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 154-161.
    12. Cherneva, Denitsa & Voigt, Kai-Ingo, 2015. "Outsourcing to 4PLs – Opportunities, Challenges, Future Outlook," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Innovations and Strategies for Logistics and Supply Chains: Technologies, Business Models and Risk Management. Proceedings of the Hamburg Internationa, volume 20, pages 231-255, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    13. Friedrich, Anne & Lange, Anne & Elbert, Ralf, 2022. "How additive manufacturing drives business model change: The perspective of logistics service providers," International Journal of Production Economics, Elsevier, vol. 249(C).
    14. Agrawal, Saurabh & Singh, Rajesh K. & Murtaza, Qasim, 2015. "A literature review and perspectives in reverse logistics," Resources, Conservation & Recycling, Elsevier, vol. 97(C), pages 76-92.
    15. Aydin, Nezir & Celik, Erkan & Gumus, Alev Taskin, 2015. "A hierarchical customer satisfaction framework for evaluating rail transit systems of Istanbul," Transportation Research Part A: Policy and Practice, Elsevier, vol. 77(C), pages 61-81.

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