Transportation is a crucial element in the supply chain. Over 80% of international trade goods by volume are transported by sea. The critical role of maritime transportation underscores the importance of strategic decision-making in selecting reliable and efficient shipping lines. The Tobacco Company (TC) case, which produces and distributes tobacco products globally, has been taken as an illustration of the lack of standardized criteria for selecting shipping lines, leading to significant delivery delays. This study aims to develop these standardized criteria by surveying five internal experts who assessed four shipping companies based on four main criteria and twelve sub-criteria. Analytical Hierarchy Process with Fuzzy logic accommodates subjectivity in decision-making and provides a clear and systematic approach to prioritizing factors. Subsequently, Multi-Objective Linear Programming was employed to identify the optimal shipping line that best met the company’s priorities while addressing trade-offs between different factors. The analysis reveals that reliability in on-time delivery, total transit time, and space availability are the top priorities in shipping line selection, with transportation cost being the least prioritized. As a result, Shipping Line C emerged as the optimal choice, supporting the company’s strategic goals.
Strategic Decision-Making for Shipping Line Selection using Fuzzy AHP and MOLP
Advances in Engineering res
International Conference on Advanced Technology and Multidiscipline ; 2024 ; Surabaya, Indonesia October 17, 2024 - October 18, 2024
Proceedings of the International Conference on Advanced Technology and Multidiscipline (ICATAM 2024) ; Chapter : 21 ; 318-329
2024-11-01
12 pages
Article/Chapter (Book)
Electronic Resource
English
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