Supply chain Management is one of the most important factors in the success of businesses and their operations nowadays. In the petrochemicals industry, and with thousands of shipments yearly around the world, the allocation process of logistics service providers (LSP) is very critical to the company success in delivering products on time and with the required quality. In this paper, a Decision Support System DSS has been developed to help a petrochemical company optimize the allocation of shipments to Logistics Service Providers LSP’s on a monthly and weekly basis. The Fuzzy Analytical Hierarchy Process FAHP was used to identify the different criteria and their corresponding weights that will be used for the LSP’s ranking. After that, those weights were used to formulate a Linear Programming model that assigns the optimal number of shipments LSP’s. After using the new decision support tool, the total cost has been significantly optimized, the LSP allocation process has been automated, which saves the decision makers time and help avoid errors.
Fuzzy AHP and Linear Programming Based Decision Support System for Logistics Service Providers Allocation
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