As described above, there are many MCDM methods, however, the critical
importance of capturing and combining a group of managers’ opinions with an
integrated MCDM methodology has not been highlighted in previous research in this
field. Thus, there is a need for a combined decision-making method to guide managers in
taking a proper decision about 3PL provider selection. This is considered in this paper
using a two-phase MCDM method, namely the AHP and TOPSIS methodology. Saaty
(1994) claimed that AHP has some advantages. First, it helps to decompose an
unstructured problem into a reliable hierarchic structure that includes various criteria,
sub-criteria, and alternatives to determine the best choice. Second, it can elicit judgments
from decision makers to determine weights of the elements. Third, it uses an admissible
consistency ratio (CR) to validate the consistency of the decision-making process.
Besides, we can apply TOPSIS method to complement AHP method for this kind of
real-life problem. TOPSIS method is rational, understandable and easily programmable
computation procedure. With the integrated application of AHP and TOPSIS methods,
evaluation process has advantages of the two methods and can never take into account
the insufficiencies of each method. Therefore, a more realistic approach may be to use of
an integrated AHP and TOPSIS methodology instead of other MCDM methods in the
decision of 3PL provider selection. The evaluation procedure of this methodology is
shown in Figure 1. The detailed descriptions of the major steps are given in the following
subsections.