Title: Assessment of the LPI of the EU countries using MCDM model with an emphasis on the importance of criteria

Authors: Smiljka Miškić; Željko Stević; Snežana Tadić; Ahmed Alkhayyat; Mladen Krstić

Addresses: Faculty of Transport and Traffic Engineering Doboj, University of East Sarajevo, Doboj, Bosnia and Herzegovina ' Faculty of Transport and Traffic Engineering Doboj, University of East Sarajevo, Doboj, Bosnia and Herzegovina ' Faculty of Transport and Traffic Engineering, University of Belgrade, Belgrade, Serbia ' Department of Computer Technical Engineering, Islamic University, Najaf 54001, Iraq ' Faculty of Transport and Traffic Engineering, University of Belgrade, Belgrade, Serbia

Abstract: The World Bank calculates the Logistics Performance Index (LPI) to determine the quality of the logistics system in 160 countries. The LPI analyses differences between countries in six dimensions. When calculating the LPI, the World Bank considers these six dimensions with equal importance. This paper aims to develop an integrated evaluation model of the logistics performance index of European Union (EU) countries with an emphasis on sensitivity analysis, which implies a change in the importance of criteria. By applying the MEREC (MEthod based on the Removal Effects of Criteria) method, the weight values of the six criteria were calculated. By applying the MARCOS (Measurement of alternatives and ranking according to COmpromise solution) method, 27 member states of the European Union (EU) were ranked. According to the integrated model results, Germany is the best-ranked country according to the logistics performance index. The sensitivity analysis shows that the weight values of the observed criteria affect the ranking results of the EU countries. Therefore, it is necessary to modify the evaluation of LPI, taking into account the importance of the criteria, and considering the real needs of the countries.

Keywords: logistics performance index; sensitivity analysis; MEREC; MARCOS.

DOI: 10.1504/WRITR.2023.132501

World Review of Intermodal Transportation Research, 2023 Vol.11 No.3, pp.258 - 279

Received: 31 Aug 2022
Accepted: 15 Nov 2022
Published online: 24 Jul 2023 *

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