Firm Selection Based on Logistics Risk Factors: A Multiple Criteria Decision Making Approach

Logistics firms are exposed several domestic and global risks such as variability in demand, shipment damages, earthquakes, and terrorist attacks. The purpose of this study is to provide an approach for selecting a logistics firm based on logistics risk factors according to the manufacturing firms' perspectives. An analytical network process method is utilized to determine risk factors' importance levels and VIKOR method is used to select the logistics firm. The study results show that the most important logistics risk factors are customer and supplier, and the least risky logistic firm is B. It can be concluded that the proposed model enables managers to examine potential risks influencing their logistics activities and select the logistics firm having minimum risk.