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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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    References listed on IDEAS

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    1. 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.
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    5. 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.
    6. Marasco, Alessandra, 2008. "Third-party logistics: A literature review," International Journal of Production Economics, Elsevier, vol. 113(1), pages 127-147, May.
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    Citations

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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.
    2. 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.
    3. 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.
    4. repec:spr:grdene:v:22:y:2013:i:2:d:10.1007_s10726-011-9261-7 is not listed on IDEAS
    5. 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.
    6. 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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