Competitiveness Evaluation of Pharmaceutical Logistics Centres Based on Combined Weight and Cumulative Prospect Theory

Abstract

In order to evaluate the competitiveness of pharmaceutical logistics centres, promote the integration of resources and improve the management level and market competitiveness of pharmaceutical logistics enterprises, an evaluation index system for the competitiveness of pharmaceutical logistics centres is constructed, and an evaluation method based on combined weights and cumulative prospect theory is proposed. This method uses AHP and the revised entropy weight to calculate the subjective and objective weights of each index respectively, and uses game theory to carry out the weight combination. The [-1, 1] linear transformation operator is used to standardize the original decision-making matrix, and then, the positive and negative ideal solutions are obtained. The comprehensive evaluation model of pharmaceutical logistics is constructed based on the cumulative prospect theory considering the decision-maker's attitude towards the risk of profit and loss. The comprehensive prospect value of each pharmaceutical logistics centre is solved and the competitiveness sequence is determined. Finally, the feasibility of the model is verified by an example. Compared with the traditional evaluation method, the result shows that the model is scientific and reasonable and conforms to the actual decision.