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Outsourcing transport service: a fuzzy multi-criteria methodology for provider selection based on comparison of the real and ideal parameters of providers

Author

Listed:
  • Srđan Ljubojević

    (University of Defence in Belgrade)

  • Dragan Pamučar

    (University of Defence in Belgrade)

  • Dragutin Jovanović

    (College for Professional Studies - Belgrade Polytechnics)

  • Vujadin Vešović

    (Faculty of Transport, Communications and Logistics)

Abstract

Transport activities are at the top of the outsourcing activities list in many companies. A Provider selection for the implementation of outsourcing transport service is therefore an important issue for managers of these companies. In this paper, we present a hybrid methodological approach to the problem of selecting the transport service provider, based on the idea of comparing the ideal parameters and real parameters of alternative providers. Fuzzy comparison of real and ideal ponders (FCRIP) model is a hybrid two-phase fuzzy model that combines the Decision Making Trial and Evaluation Laboratory Method (DEMATEL) with a new method of ranking the alternatives. DEMATEL method is used to evaluate the mutual influence of the criteria of differentiation of alternative providers and thus determine the ideal weighted values of the observed criteria, while in the second phase of the model, these values are compared to the perceived real values of the criteria, based on which alternative providers are evaluated and ranked. FCRIP model has been tested on the case study of provider selection for the needs of the enterprise Naftagas—transport doo, Serbia.

Suggested Citation

  • Srđan Ljubojević & Dragan Pamučar & Dragutin Jovanović & Vujadin Vešović, 2019. "Outsourcing transport service: a fuzzy multi-criteria methodology for provider selection based on comparison of the real and ideal parameters of providers," Operational Research, Springer, vol. 19(2), pages 399-433, June.
  • Handle: RePEc:spr:operea:v:19:y:2019:i:2:d:10.1007_s12351-017-0293-x
    DOI: 10.1007/s12351-017-0293-x
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    References listed on IDEAS

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    1. Toly Chen, 2020. "Enhancing the efficiency and accuracy of existing FAHP decision-making methods," EURO Journal on Decision Processes, Springer;EURO - The Association of European Operational Research Societies, vol. 8(3), pages 177-204, November.

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