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Assessment of the LPI of the EU countries using MCDM model with an emphasis on the importance of criteria
(Inderscience Enterprises Ltd, 2023) Miškić, Smiljka; Stević, Željko; Tadić, Snežana; Alkhayyat, Ahmed; Krstić, Mladen
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 bestranked 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.