Application of fuzzy VIKOR and fuzzy TOPSIS methods for warehouse logistics operator selection

In today’s competitive environment, the importance of warehousing within logistics has been growing. The role of working with the right warehouse operator firm in achieving the enterprises goals is getting more important. Analysis of outsourcing warehouse activities or third party warehousing reveal that contract warehousing costs are significantly lower than stand-alone warehousing. The aim of this study is to propose a multi-criteria decision making model to evaluate the third party logistics provider options as a warehouse operator. Relatively new method, called VIKOR (VlseKriterijumska Optimizacija I Kompromisno Resenje in Serbian, means Multi-criteria Optimization and Compromise Solution) is used in the evaluation procedure supported by fuzzy logic approach. Additionally, a real case study in food sector is presented to illustrate the application of the suggested approach. Obtained results were compared with fuzzy TOPSIS method which is a widely used approach for multi-criteria decision making problems.