Selecting inbound logistic policies: an ANP based multi-criteria decision making approach

This work presents a structured framework for the selection of the best inbound logistic policy, in a supplier-buyer relationship. Defining long lasting collaborations is a strategic issue, involving considerations of several parameters in terms of Benefits, Opportunities, Costs and Risks (BOCR). To support decision makers, the paper proposes a multi-criteria BOCR, which integrates a high level Analytical Hierarchy Process (AHP) with a low level Analytic Network Process (ANP). The latter one concerns operational issues, while the first one aggregates results from a strategically oriented point of view. The novelty of the approach relies in the way in which decision criteria have been structured in the form of decision networks: this makes it possible not only to streamline the analysis, but it also assures a high degree of flexibility. An industrial application is finally presented as experimental validation; obtained results demonstrate the quality and the robustness of the approach.