A 2-Tuple Linguistic Decision Model for Multi-Criteria Decision-Making Problem Case Study of Selecting Logistic Service Provider in the Bakery Industry

Abstract

A logistic provider selection problem is one of the most important business issues in a bakery industry. The best supplier can generate the superior performances for a company. However, there is a lack of research investigating on this issue. The objective of this research is to develop a decision-making model for logistic provider selection problems in a bakery industry. This research formulates a decision-making situation as multiple-criteria decision making problem under linguistic variables. In order to do so, the research was corrected data from a case study company where produces a bakery for exporting to Japan and several countries. The sample set is three selected logistic provider companies where is working in logistics sector more than 15 years. These three companies as alternatives were evaluated from three expert, who is working in the company more than 10 years, with regard to each criterion. By applying a 2-Tuple linguistic representation and computation model, the results of this research show that the ranking of the case companies is that the case company “3” is the most preferable company regarding the evaluations from three evaluators. And the final ranking is that company 3 > company 1 > company 2. Apart from the benefits of helping a decision-makers to easily making their decision, the 2-tuple model can overcome the loss of information which affects the consistency of the final ranking. This research provides new knowledge of how to make a decision under linguistic information environment in a bakery industry not only criteria for evaluation, but also a computational model for applying this proposed model to solving practical business issues.