A multi‐objective 3PL allocation problem for fish distribution

Abstract

Purpose The primary objective of this paper is to show how mathematical modeling can be used for solving a third party logistics (3PL) allocation problem. Design/methodology/approach The solution approach consists of finding a compromise solution for the six different strategies, defined in the paper by using lexicographic goal programming involving three objectives under some realistic constraints related to capacities of the markets. Findings This study investigates the usefulness and efficacy of the proposed method for a 3PL allocation problem for a case example of a typical fish supply network. The decision‐makers can evaluate the alternative solutions with respect to a set of decision criteria. The result indicates substantial improvement by reducing the number of 3PL service providers and reallocating them to the case fish markets. Practical implications The work provides a useful decision model for practicing managers, policy makers and researchers of this area. Originality/value This model would help a decision maker to resolve the issues related to selection of 3PL under a set of conflicting multi‐objective criteria.