Selection of logistics mode for business to customer e-commerce based on AHP and DEA

Abstract

Logistics mode has become a key element to the success of B2C(Business to Customer) e-commerce, but few studies have focused on the selection of logistics mode with a comprehensive method for B2C e-commerce. An effort is devoted to classifying logistics modes into six categories: market exchanges, customized logistics, logistics outsourcing, logistics alliance, joint venture and in-house logistics and to figuring out the influencing factors related to the selection of logistics mode. It is concluded that both qualitative and quantitative factors are important for effective logistics mode selection. A two-stage model based on AHP(Analytic Hierarchy Process) and DEA(Data Envelopment Analysis) is then developed to choose an appropriate mode. AHP method produces the weights of the six modes by analyzing these qualitative factors and DEA method gets the effective candidate modes through quantitative analyses. After that, a relative case is designed to test and verify the effectiveness of this model. Result shows that the AHP/DEA model can obviously lead to a more rational choice and simplify the process to make decisions.