Optimal Partner Combination for Joint Distribution Alliance using Integrated Fuzzy EW-AHP and TOPSIS for Online Shopping
Abstract
:1. Introduction
2. Identifying the Evaluation Criteria Based on an ESEF Framework
2.1. Economic Criteria
- (1)
- (2)
- Business overlap (C2): Refers to the degree of similarity in business among these alternatives. The more similar the business is, the fiercer the competition is among partners. Therefore, the large similarity of business among these alternatives can have a negative impact on the sustainability and stability of the alliance.
- (3)
- Innovation ability (C3): Refers to the management of the innovation and technology of enterprises. The alliance that consists of enterprises with strong innovation ability are vastly more competitive [36].
- (4)
- Logistic costs (C4): Includes transportation, warehouse, management and information process costs.
2.2. Societal Criteria
- (1)
- Reputation (C5): Refers to the social assessment of enterprises. Reputation will be one of the key factors for the future stability and successful implementation of an alliance [50].
- (2)
- Compatible culture (C6): Refers to the similarity and openness of enterprise culture. Compatible culture, which has a significant positive effect on the stability and sustainability of an alliance, is viewed as fundamental in the decision-making process [51].
- (3)
- Service capability (C7): Refers to the number of orders that can be completed by partner combinations.
- (4)
- Customer satisfaction (C8): Refers to customer satisfaction levels, one of the most important criteria in the optimal partner combination selection.
2.3. Environmental Criteria
- (1)
- Energy consumption (C9): Measures the energy consumption when completing a certain number of orders.
- (2)
- Greenhouse gas (GHG) emission reduction (C10): The partner combination consisting of these environmental enterprises will emit fewer environmental pollutants (such as CO2 and CH4) in their daily operations [46]. Therefore, the criteria measures the GHG emission reductions of different partner combinations under the same conditions.
- (3)
- Volatile organic compounds (VOCs) (C11): Measures the VOCs emissions from warehouse activities, packing of all mail orders, transportation activities and so on. Since 2015 China has fined enterprises which emit VOCs [52].
- (4)
- Environmental equipment and facilities (C12): Measures the number of orders which are completed by environmental equipment and facilities.
2.4. Flexibility Criteria
- (1)
- Types of logistics services (C13): In general, this refers to the coverage of customer demand for online shopping logistics services. Nowadays, the online shopping logistics mode is shifting from cost-centralized to customer-centralized. The more types of logistics services, the greater coverage of customer demand [6].
- (2)
- (3)
- Types of value-added services (C15): Other than logistics services, some value-added services such as payment collection, product’s package and labeling are offered.
3. The Integrated Fuzzy EW-AHP and TOPSIS Method for Partner Combination Selection
3.1. Fuzzy Set Theory
3.2. Integrated Fuzzy EW-AHP for Determining Criteria Weights
- Step 1:
- Let , , be the superiority linguistic rating on criteria weight assigned to criteria by decision-maker . Assume that is the converted value via . Then the fuzzy entropy can be calculated by:
- Step 2:
- Calculate the fuzzy EW
- Step 3:
- Calculate the criteria weight using the fuzzy AHP considering the subjective factors. Details of calculation process of fuzzy AHP method can be referred to the study of Felix et al. [25].
- Step 4:
- Calculate the final weight by integrating the fuzzy EW and fuzzy AHP
3.3. Fuzzy TOPSIS Method
- Step 1:
- Calculate the aggregate fuzzy linguistic ratings for combination performance of alternatives.Let us consider a set of alternatives (partner combinations) which are to be evaluated against a set of criteria . The combination performances of criteria are defined in linguistic terms that can be obtained from experts. Let , be combination performance linguistic rating of expert for each alternative with respect to criteria . Then the fuzzy linguistic rating , , , for criteria of alternative can be calculated by:
- Step 2:
- Build the initial fuzzy decision matrix.According to Equation (6), the initial fuzzy decision matrix can be built.
- Step 3:
- Normalize the fuzzy decision matrix.In general, there are two kinds of attributes namely benefit-type and cost-type in the criteria. For the benefit-type criteria, the larger the better, such as resource complementarity; for the cost-type criteria, the smaller the better, such logistics cost. Therefore, the normalization processing on the different kinds of criteria needs to be first performed [18,61].For benefit-type criteria, the normalization processing is expressed as:For cost-type criteria, the normalization processing is expressed as:Then, the normalized fuzzy decision matrix can be obtained as:
- Step 4:
- Determine the integrated fuzzy weights of criteria.The integrated fuzzy weight of criteria can be calculated using Equations (2)–(5).
- Step 5:
- Calculate the weight normalized fuzzy decision matrix.The weight normalized fuzzy decision matrix can be calculated using Equation (11).
- Step 6:
- Calculate the distances of the alternatives from the fuzzy positive and negative ideal solution.
- Step 6.1:
- Determine the fuzzy positive ideal solution and negative ideal solution.Suppose that and respectively represent the benefit-type criteria set and cost-type criteria set. and represent the fuzzy positive ideal solution and negative ideal solution, respectively. Then, and can be calculated by
- Step 6.2:
- Calculate the distances.In this paper, a modified geometrical distance method is employed which can reflect more information of experts with uncertainty than the Euclidean distance [62]. The distance between two triangular fuzzy numbers and can be calculated byTherefore, the distance of alternative from the fuzzy positive and negative ideal solution can be calculated by
- Step 7:
- Calculate the relative closeness of alternative to the ideal solution
- Step 8:
- Rank the alternatives on the basis of relative closeness to the ideal solution.According to the calculation results in Step 7, the alternative with the greatest to the ideal solution should be selected as the optimal partner combination.
3.4. Sensitivity Analysis
- (1)
- The sub-criteria has 5%, 10%, 20% less weight and 5%, 10%, 20% more weight than the base weight (i.e., the weight obtained in Section 3.2.) in economy criteria.
- (2)
- The sub-criteria has 5%, 10%, 20% less weight and 5%, 10%, 20% more weight than the base weight in society criteria.
- (3)
- The sub-criteria has 5%, 10%, 20% less weight and 5%, 10%, 20% more weight than the base weight in environment criteria.
- (4)
- The sub-criteria has 5%, 10%, 20% less weight and 5%, 10%, 20% more weight than the base weight in flexibility criteria.
4. Numerical Application
- Step 1:
- The linguistic ratings for criteria weights and partner combination performance are obtained according to expert opinion.In order to obtain the linguistic ratings, five groups of expert panels () in the fields of economy, environment, society, logistics, and e-commerce were formed. Each group of expert panel gave the linguistic ratings judgments for the criteria weights and combination performance of each alternative, as can be seen in Table 3 and Table 4.
- Step 2:
- Step 3:
- According to Table 2 and Equations (6) and (7), the initial fuzzy decision matrix can be obtained:
- Step 4:
- The weighted normalized fuzzy decision matrix is calculated using Equations (8)–(11).Among the fifteen criteria, C1, C3, C5, C6, C7, C8, C10, C12, C13, C14 and C15 are benefit-type criteria; C2, C4, C9 and C11 are cost-type criteria. To obtain the normalized fuzzy decision matrix and weighted normalized fuzzy decision matrix , we use Equations (8)–(11). For example, the benefit-type criteria C1 is normalized using Equation (8) as follows:Then = (0.667,0.667,1). Applying Equation (11) for criteria C1, we get = (0.020,0.025,0.045). Here, refers to the combination performance of alternative 1 with respect to criteria 1 in the normalized fuzzy decision matrix, and refers to the combination performance of alternative 1 with respect to criteria 1 in the weight normalized fuzzy decision matrix.Other elements in weighted normalized fuzzy decision matrix can be calculated in the same way. Therefore, the weighted normalized fuzzy decision matrix is obtained as below:
- Step 5:
- The distances of the alternatives from the fuzzy positive and negative ideal solution are calculated.The fuzzy positive and negative ideal solution can be calculated using Equations (12) and (13), and the distances and of alternative from the fuzzy positive and negative ideal solution can be calculated using Equations (14)–(16), i.e.,
- Step 6:
- The relative closeness of alternatives to the ideal solution is calculated.Finally, the relative closeness of alternative to the ideal solution can be calculated using Equation (17):
- Step 7:
- On the basis of relative closeness, the four alternatives are ranked as follows:It is seen above that the partner combination ranks first, so , namely the partner combination CQ, RK and ML, should be selected as the optimal alternative.
5. Discussion
6. Conclusions
Acknowledgments
Author Contributions
Conflicts of Interest
References
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Linguistic Term | Fuzzy Number |
---|---|
Of little important (LI) | (1,1,3) |
Moderately important (MI) | (1,3,5) |
Important (I) | (3,5,7) |
Very important (VI) | (5,7,9) |
Absolutely important (AI) | (7,9,9) |
Linguistic Term | Fuzzy Number |
---|---|
Very low (VL) | (1,1,3) |
Low (L) | (1,3,5) |
Medium (M) | (3,5,7) |
High (H) | (5,7,9) |
Very high (VH) | (7,9,9) |
C1 | C2 | C3 | C4 | C5 | C6 | C7 | C8 | C9 | C10 | C11 | C12 | C13 | C14 | C15 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
EP1 | AI | VI | AI | VI | I | AI | I | AI | AI | AI | AI | AI | AI | AI | AI |
EP2 | AI | I | VI | I | VI | VI | MI | AI | VI | VI | AI | VI | AI | AI | VI |
EP3 | VI | I | VI | I | I | VI | VI | AI | AI | VI | VI | AI | AI | VI | I |
EP4 | VI | MI | AI | MI | I | AI | I | VI | AI | I | V | VI | AI | AI | I |
EP5 | AI | I | VI | MI | VI | AI | I | I | VI | I | VI | AI | VI | VI | VI |
C1 | C2 | C3 | C4 | C5 | C6 | C7 | C8 | C9 | C10 | C11 | C12 | C13 | C14 | C15 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
EP1 | PC1 | VH | VH | H | H | H | M | M | M | L | M | VH | H | M | H | M |
PC2 | H | VH | H | M | H | M | M | M | VL | L | L | M | H | M | H | |
PC3 | H | VH | M | H | VH | VH | H | VH | VH | VH | VH | H | VH | VH | VH | |
PC4 | VH | H | M | H | H | M | M | VH | VH | H | H | M | M | H | H | |
EP2 | PC1 | H | H | VH | H | H | M | M | M | L | M | H | M | M | H | H |
PC2 | H | M | M | H | H | M | M | L | L | M | L | M | H | M | H | |
PC3 | VH | H | H | VH | H | VH | VH | VH | H | VH | H | VH | VH | M | VH | |
PC4 | H | H | M | H | H | M | H | VH | H | VH | H | H | M | M | H | |
EP3 | PC1 | H | VH | H | M | M | H | L | M | M | L | H | H | M | H | VH |
PC2 | M | H | H | M | H | M | H | L | M | M | M | M | L | H | M | |
PC3 | VH | VH | H | H | VH | H | H | VH | VH | H | VH | VH | VH | VH | H | |
PC4 | H | M | H | H | H | H | M | H | VH | VH | H | M | H | H | H | |
EP4 | PC1 | H | H | VH | M | M | L | M | M | L | M | VH | H | H | H | M |
PC2 | M | H | M | M | H | H | VH | L | M | L | M | M | H | H | M | |
PC3 | H | VH | VH | VH | VH | VH | VH | H | H | VH | VH | H | VH | H | VH | |
PC4 | H | VH | M | M | H | H | H | VH | H | H | H | H | M | M | H | |
EP5 | PC1 | H | M | H | H | H | M | M | M | L | VL | VH | H | M | M | H |
PC2 | M | H | H | VH | H | VH | M | L | H | M | M | H | M | H | VH | |
PC3 | VH | VH | H | H | H | VH | VH | VH | H | VH | H | VH | VH | H | VH | |
PC4 | H | H | M | H | H | VH | H | VH | VH | H | H | M | H | M | M |
Fuzzy-EW | C1 | C2 | C3 | C4 | C5 |
[0.023,0.025,0.032] | [0.116,0.144,0.146] | [0.025,0.025,0.036] | [0.178,0.211,0.250] | [0.052,0.056,0.082] | |
C6 | C7 | C8 | C9 | C10 | |
[0.023,0.025,0.036] | [0.116,0.144,0.0148] | [0.058,0.066,0.083] | [0.023,0.026,0.034] | [0.078,0.080,0.092] | |
C11 | C12 | C13 | C14 | C15 | |
[0.025,0.026,0.036] | [0.021,0.024,0.037] | [0.016,0.025,0.025] | [0.024,0.025,0.034] | [0.079,0.080,0.091] | |
Fuzzy-AHP | C1 | C2 | C3 | C4 | C5 |
[0.073,0.078,0.082] | [0.040,0.048,0.057] | [0.073,0.074,0.077] | [0.034,0.044,0.053] | [0.050,0.055,0.063] | |
C6 | C7 | C8 | C9 | C10 | |
[0.074,0.079,0.082] | [0.040,0.047,0.058] | [0.070,0.075,0.076] | [0.073,0.080,0.082] | [0.060,0.063,0.066] | |
C11 | C12 | C13 | C14 | C15 | |
[0.058,0.061,0.063] | [0.073,0.078,0.082] | [0.072,0.082,0.087] | [0.073,0.078;0.082] | [0.062,0.063,0.066] | |
Integrated weights | C1 | C2 | C3 | C4 | C5 |
[0.030,0.037,0.045] | [0.092,0.110,0.134] | [0.030,0.037,0.044] | [0.130,0.165,0.182] | [0.050,0.051,0.084] | |
C6 | C7 | C8 | C9 | C10 | |
[0.030,0.033,0.045] | [0.092,0.113,0.133] | [0.066,0.097,0.103] | [0.030,0.036,0.045] | [0.084,0.094,0.096] | |
C11 | C12 | C13 | C14 | C15 | |
[0.024,0.031,0.036] | [0.030,0.036,0.044] | [0.027,0.030,0.035] | [0.031,0.038,0.046] | [0.084,0.094,0.096] |
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He, Y.; Wang, X.; Lin, Y.; Zhou, F. Optimal Partner Combination for Joint Distribution Alliance using Integrated Fuzzy EW-AHP and TOPSIS for Online Shopping. Sustainability 2016, 8, 341. https://doi.org/10.3390/su8040341
He Y, Wang X, Lin Y, Zhou F. Optimal Partner Combination for Joint Distribution Alliance using Integrated Fuzzy EW-AHP and TOPSIS for Online Shopping. Sustainability. 2016; 8(4):341. https://doi.org/10.3390/su8040341
Chicago/Turabian StyleHe, Yandong, Xu Wang, Yun Lin, and Fuli Zhou. 2016. "Optimal Partner Combination for Joint Distribution Alliance using Integrated Fuzzy EW-AHP and TOPSIS for Online Shopping" Sustainability 8, no. 4: 341. https://doi.org/10.3390/su8040341
APA StyleHe, Y., Wang, X., Lin, Y., & Zhou, F. (2016). Optimal Partner Combination for Joint Distribution Alliance using Integrated Fuzzy EW-AHP and TOPSIS for Online Shopping. Sustainability, 8(4), 341. https://doi.org/10.3390/su8040341