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In this paper, we develop a fuzzy tri-level decision making (FTLDM) model to deal with decentralized decision making problems with three levels of decision makers. Based on the λ-cut of fuzzy set, we transform an FTLDM problem into a multiobjective tri-level decision making problem. Based on the linear tri-level Kth-best algorithm, the global optimal solution can be obtained. A case study for third-party logistics decision making in supply chain is utilized to illustrate the effectiveness of the proposed algorithm.

A fuzzy tri-level decision making algorithm and its application in supply chain