Integration of the Social Welfare Function and TOPSIS Algorithm for 3PL Selection

In this study, we propose a two-stage method based on the social welfare function and TOPSIS. In the first stage, we used the social welfare function theory for selection potential providers from too many 3PLs (third part logistic suppliers). Then, TOPSIS theory will be used for final selection, avoiding the subjective estimation of experts. Experiments are conducted to evaluate the quality of the proposed approach by using a case company. The experimental results indicate that the cost reduction may be the most important index.