Third Party Logistics Service Provider Selection : Application of the Improved Aggregate Cost Method

다국어 초록 (Multilingual Abstract)

During the process of enterprise management, those chemical enterprises usually adopt outsourcing, as they hand over the logistical work to the third party. Here, we call the third part the “logistics service provider”. In this paper, Chemical Enterprise A is set as an example to study the application of the optimizing selection for the third party logistics service provider, as well as its improvement of aggregate cost method. This paper is aimed at theory, practicality and operability, and hoping to choose the provider which can guarantee the cost is smallest by introducing the original provider model. Among all the aspects, this paper is persuasive. Meanwhile, due to the instability of the relevant data which are collected, the factors impacting upon the total cost are uncertain, thus their credibility is affected. Later, according to the actual demand of the logistics service provider as well as the Benefit-Cost Ratio in aggregate cost method, the qualitative method and the quantitative method are combined with each other, and then the cost can be reduced through Analytic Hierarchy Process. Moreover, the factors which are irrelevant to cost selection are reasonably transformed into the cost adjustment proportion, and an improved provider selection model is established. At last, by introducing the specific case of the third party logistics service provider of Chemical Enterprise A, the effectiveness in practical application of improving the provider selection model can be verified.

목차 (Table of Contents)

• Abstract
• 1. Introduction
• 2. Model Establishment
• 2.1. Original Provider Selection Model
• 2.2. Advantages and Disadvantages of the Original Model
• 2.3. Improve the Selection Model of Provider
• 3. The Application of the Model
• 3.1. The Introduction of the Third Party Logistics Service Provider of Chemical Enterprise A
• 3.2. Confirm the Evaluation Index System and the Weight Value
• 3.3. The Application of Improved Model
• 4. Conclusion
• Acknowledgments
• References