Warehousing service provider selection using AHP, TOPSIS, and hybrid approach: a case study

Warehouses are highly significant connections in the supply chain network, whether the market in question is local or worldwide. The position of the warehouse in the network of the supply chain influences the efficiency and speed of the supply chain. The acceleration of material movements within supply chains is helped by warehouse management activities.As of now, the company has encountered several problems regarding its current warehouse storage rate and operation. The aim of this study is to define the most appropriate third-party service providers that meet company’s the minimum warehousing criteria and at the most valuable storage rate. The three suppliers S1, S2 S3 are chosen for selection The experience decision-makers in warehouse operation are evaluated for each criterion and given a score for each model.Consequently, selecting a suitable Multi-Criteria Decision-Making (MCDM) method is a crucial step in selecting appropriate the third-party logistic service provider (3PL). In this research, the chosen selection method is Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS), the Analytic Hierarchy Process (AHP), and the hybrid model of the Analytic Hierarchy Process (AHP) and Techniquefor Order of Preference by Similarity to Ideal Solution (TOPSIS) method. The result from 3 different methods indicated that S3 is the most suitable for the company.