A hybrid multi-criteria approach to supply chain design based on mathematical programming

The companies operating in an increasingly complex competitive world opt for a logistics outsourcing strategy. The decision maker may encounter problems that are difficult to solve such as the choice of a provider in the presence of a multiple criteria. This paper allows solving a problem of logistics outsourcing based on multi-criteria decision aid. The majority of multi-criteria methods require a direct providing of parameters allowing the decision maker to reach a ranking of alternatives according to multiple criteria as PROMETHEE method. However, this task of direct and precise fixation of parameter values is quite difficult. In addition, the parameters provided by such a way are subjective. To reduce this problem, we propose a new multi-criteria approach that hybrids objective methods. In order to automate pairwise comparison matrix for criteria, we use AHPr method. Thereafter, we determine criteria weights by applying AHP method and reach an alternative ranking by applying PROMETHEE. The results of the hybrid method are integrated in a mathematical program. A real world application of choosing a transport provider within the Tunisian Chemical Group (GCT) is presented to validate the proposed approach and the number of providers and optimal transported quantities are determined.