Financial Evaluation by the Combined AHP-PROMETHEE Method: A Case Study of Integrated Logistics Service Providers in Thailand

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Kraisee Komchornrit

Abstract

     In relation to core competence, cost reduction and improvement of customer satisfaction, an outsourcing has noticeably become a crucial strategy to cope with those of numerous firms. Logistics services (such as management of inventory and transport) have been emerged as one of the outsourcing activities, which a logistics service provider performs its logistics capability to fulfill operations of any firm tied up with the complex networks of supply chain. In this case, the financial performance of integrated logistics service providers located in Thailand were compared through the notion of multi-criteria decision making (MCDM). Therefore, the combined AHP-PROMETHEE method was proposed in this study. AHP was utilized to determine weights of four criteria and 15 sub-criteria based directly on financial ratios, while PROMETHEE was employed to evaluate and rank four pre-determined alternatives of integrated logistics service provider from the best to worst one on financial ability. As a consequence, an outcome shows that III is viewed as the best organization among others for manipulating on the whole finance efficiently. Ultimately, this is a benchmark for other firms to improve their financial performance, and investors can manipulate this method as a tool to carefully invest in the stock market.


Keywords: AHP, Financial Ratio, Logistics Service Provider, MCDM, PROMETHEE

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How to Cite
KOMCHORNRIT, Kraisee. Financial Evaluation by the Combined AHP-PROMETHEE Method: A Case Study of Integrated Logistics Service Providers in Thailand. Journal of Community Development Research (Humanities and Social Sciences), [S.l.], v. 14, n. 2, p. 77-89, mar. 2021. ISSN 2985-0231. Available at: <https://www.journal.nu.ac.th/JCDR/article/view/Vol-14-No-2-2021-77-89>. Date accessed: 29 mar. 2024. doi: https://doi.org/10.14456/jcdr-hs.2021.17.