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Abstract
Logistics service provider selection is a complex multi – criteria decision
making process; in which, decision makers have to deals with the optimization
of conflicting objectives such as quality, cost, and delivery time. Despite to the
great variety of methods and models that have been designed to help decision
maker for this process in literature, few efforts have been dedicated to develop
systematic approaches for logistics service provider selection using these pre-
designed methods and models. In this study, logistics service provider
selection decision support system based on the fuzzy analytic hierarchy
process (FAHP) method is proposed
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Erdal ÇAKIR, Hakan TOZAN, Özalp VAYVAY
1. INTRODUCTION
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A Method for Selecting Third Party Logistic Service Provider Using Fuzzy
AHP
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Erdal ÇAKIR, Hakan TOZAN, Özalp VAYVAY
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A Method for Selecting Third Party Logistic Service Provider Using Fuzzy
AHP
Intensity of
Definition Explanation
Importance
Two activities contribute equally to the
1 Equal Importance
objective
Experience and judgment slightly favor one
3 Moderate Importance
activity over another
Experience and judgment strongly favor one
5 Strong Importance
activity over another
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Erdal ÇAKIR, Hakan TOZAN, Özalp VAYVAY
43
A Method for Selecting Third Party Logistic Service Provider Using Fuzzy
AHP
Step 1: The value of fuzzy synthetic extent with respect to the i th object is
defined as
1
m j n m
Si M gi M gij (1)
j 1 i 1 j 1
m j
To obtain M gi , perform the fuzzy addition operation of m extent
j 1
analysis values for a particular matrix such that:
m j m m m
M gi l j , m j , u j (2)
j 1 j 1 j 1 j 1
1
n m
and to obtain M gij , perform the fuzzy addition operation of M jgi
j 1 j 1
(j = 1, 2, ...,m) values such that
n m j n
M gi li , mi , u i
n n (3)
i 1 j 1 i 1 i 1 i 1
and then compute the inverse of the vector above, such that:
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Erdal ÇAKIR, Hakan TOZAN, Özalp VAYVAY
n m j
1 1 1 1
i1 j1M gi n , n , n (4)
u i mi li
i 1 i 1 i 1
~ ~
Step 2: As M 1 (l1 , m1 , u1 ) and M 2 (l 2 , m2 , u 2 ) are two triangular fuzzy
numbers, the degree of possibility of M 2 (l 2 , m2 , u 2 ) M 1 (l1 , m1 , u1 )
defined as:
~ ~
V M 2 M 1 sup min M~ ( x), M~ ( y )
yx
1 2
(5)
~ ~
~ ~
V M 2 M 1 hgt ( M 1 M 2 ) M 2 (d )
1, if m m (6)
2 1
0, if l1 u 2
l1 u 2
, otherwise
(m2 u 2 ) (m1 l1 )
The following figure illustrates equation 6 where d is the ordinate of the highest
intersection point D between M1 and M 2 to compare M1 and M2, we need both
values of V M 1 M 2 and V M 2 M 1 [14, 1].
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A Method for Selecting Third Party Logistic Service Provider Using Fuzzy
AHP
Step 3: The degree possibility for a convex fuzzy number to be greater than
k convex fuzzy Mi (i=1, 2, k) numbers can be defined by
W (d ( A1 ), d ( A2 ),......, d ( An )) T (8)
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Erdal ÇAKIR, Hakan TOZAN, Özalp VAYVAY
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A Method for Selecting Third Party Logistic Service Provider Using Fuzzy
AHP
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Erdal ÇAKIR, Hakan TOZAN, Özalp VAYVAY
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A Method for Selecting Third Party Logistic Service Provider Using Fuzzy
AHP
~
where Wi is the combined fuzzy weight of decision element i of K decision
~
makers, Wi k is the fuzzy weight of decision element i of decision maker k
and K illustrates the number of decision makers.
The pair-wise comparison matrix for the main attributes is built and
illustrated in the following table and other matrices are constructed in the
same manner.
RPT (1/2, 2/3, 1) (1/2, 2/3, 1) (2/5, 1/2, 2/3) (1, 1, 1) (1/2, 1, 3/2)
4. RESEARCH FINDINGS
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Erdal ÇAKIR, Hakan TOZAN, Özalp VAYVAY
Main
Criteria
Main
Criteria Sub-Criteria Weight
A
Weight Weight
B C
Point
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A Method for Selecting Third Party Logistic Service Provider Using Fuzzy
AHP
Main
Main Weight Weight Weight
Criteria
Criteria A B C
Point
5. CONCLUSION
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Erdal ÇAKIR, Hakan TOZAN, Özalp VAYVAY
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A Method for Selecting Third Party Logistic Service Provider Using Fuzzy
AHP
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