Optimal Partner Combination for Joint Distribution Alliance using Integrated Fuzzy EW-AHP and TOPSIS for Online Shopping

Abstract: With the globalization of online shopping, deterioration of the ecological environment and the increasing pressure of urban transportation, a novel logistics service mode—joint distribution (JD)—was developed. Selecting the optimal partner combination is important to ensure the joint distribution alliance (JDA) is sustainable and stable, taking into consideration conflicting criteria. In this paper, we present an integrated fuzzy entropy weight, fuzzy analytic hierarchy process (fuzzy EW-AHP) and fuzzy technique for order preference by similarity to an ideal solution (TOPSIS) approach to select the optimal partner combination of JDA. A three-phase approach is proposed. In the first phase, we identify partner combination evaluation criteria using an economy-society-environment-flexibility (ESEF) framework from a perspective that considers sustainability. In the second phase, the criteria weights and criteria combination performance of different partner combinations were calculated by using an integrated fuzzy EW-AHP approach considering the objective and subjective factors of experts. In the third phase, the JDA partner combinations are ranked by employing fuzzy TOPSIS approach. The sensitivity analysis is considered for the optimal partner combination. Taking JDA in Chongqing for example, the results indicate the alternative partner combination 3 (PC3) is always ranked first no matter how the criteria weights change. It is effective and robust to apply the integrated fuzzy EW-AHP and TOPSIS approach to the partner selection of JDA.