Multi-Criteria Decision Making in Selection of Seventh Party Logistics Using AHP

Abstract: In today's industrial scenario, the expectations and demand of customers are reaching great heights. In order to satisfy the customer requirements, the users are increasingly turning towards seventh party logistics (7PL) service providers to manage their total supply chain operations. In this present research, initially, the criteria for the selection of integrated service providers have been identified and an integrated modal based on their inter-relationship has been developed with help of shippers. With this idea of what factors to be considered and their inter-relationships while selecting integrated service provider. Later, various methods deriving the priority weights viz. Analytical Hierarchy Process (AHP) have been employed for 7PL service provider selection. The derived priorities of 7PL alternatives using methods have been critically analyzed and compared for effective selection. The use of the model indicates that the computed quantitative evaluation can be applied to improve the precision of the selection.

Keywords: Analytical Hierarchy Process, Seventh party logistics, priority weight, criteria selection