An approach to analyze logistic outsourcing problem in medium‐scale organization by CFPR and VIKOR

Abstract

Purpose

The purpose of this paper is to make out a complete solution to logistic outsourcing problem in a medium‐scale organization by using consistent fuzzy preference relation (CFPR) and vlsekriterijumska optimizacija i kompromisno resenje (VIKOR) method.

Design/methodology/approach

The initial approach to this research was to develop a comprehensive framework for logistic outsourcing problem and selection of most appropriate third party logistic (3PL) provider.

Findings

It has been found that the organization should outsource logistic activities. The alternatives (3PL providers) have also been ranked and the fifth 3PL provider has been termed as best third party logistic provider.

Research limitations/implications

The parameters selected for this study and developed framework are applicable only to a medium‐scale organization manufacturing automobile parts in northern India.

Originality/value

This is probably the first time that an attempt has been made to apply the two‐phase methodology approach, using CFPR and VIKOR, to analyze a multi‐criteria logistic outsourcing problem. A case is provided which demonstrates how to solve logistic outsourcing, a multi‐criteria decision‐making problem.

Citation

Kumar, R., Singh, H. and Dureja, J.S. (2012), "An approach to analyze logistic outsourcing problem in medium‐scale organization by CFPR and VIKOR", Journal of Manufacturing Technology Management, Vol. 23 No. 7, pp. 885-898. https://doi.org/10.1108/17410381211267718