Third-Party Cold Chain Medicine Logistics Provider Selection by a Rough Set-Based Gained and Lost Dominance Score Method

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Third-Party Cold Chain Medicine Logistics Provider Selection by a Rough Set-Based Gained and Lost Dominance Score Method Huchang Liao1,2 • Jiaying Chang1 • Zhiying Zhang1 • Xiang Zhou3 Abdullah Al-Barakati2



Received: 26 November 2019 / Revised: 26 March 2020 / Accepted: 15 April 2020  Taiwan Fuzzy Systems Association 2020

Abstract Choosing third-party cold chain logistics suppliers can be regarded as a multiple criteria group decisionmaking problem since multiple aspects of suppliers are required to be evaluated by multiple experts. This paper aims to address the problem of selecting the optimal thirdparty cold chain medicine logistics provider considering the uncertainties caused by the qualitative criteria that are difficult to accurately evaluate and the limitation of experts’ knowledge and cognition. We propose a rough setbased gained and lost dominance score method in which experts are supposed to use linguistic terms to express their information. First, we combine rough numbers with linguistic scale functions to depict the semantics of linguistic terms and convert the formal expression information of linguistic terms into numerical information, which has an advantage of expressing imprecision and subjective judgments of experts. In addition, given that different experts often have different emphases on different attributes, we investigate a rough set-based gained and lost dominance score method in which experts have different weights for different criteria. Finally, an illustrative example of selecting the optimal third-party cold chain medicine logistics is given with comparative analysis, showing the & Huchang Liao [email protected] & Xiang Zhou [email protected] 1

Business School, Sichuan University, Chengdu 610064, China

2

Faculty of Computing and Information Technology, King Abdulaziz University, Jeddah 21589, Saudi Arabia

3

School of Finance, Anhui University of Finance and Economics, Bengbu 233030, China

efficiency of the proposed method. This method provides a new way to solve the selection problem of third-party logistics suppliers. Keywords Multiple criteria group decision making  Rough number  Third-party logistics provider selection  Cold chain medicine logistics  Gained and lost dominance score method  Linguistic term set

1 Introduction With the increasing demand for medical drugs in the market, medicine logistics plays an increasingly prominent role since it is an important guarantee for the smooth circulation of medicines. The policies of supporting express delivery companies to enter the medical market and the high investment in logistics infrastructure have led more and more pharmaceutical enterprises to choose professional third-party logistics (3PL) companies to carry out the transportation and distribution of pharmaceutical products, so as to focus on improving their core competitiveness [1]. As the third-party cold chain medical logistics provider selection involves multiple criteria and experts, it can be regarded as a multiple criteria group decisionmaking (MCGDM) prob