Stochastic dominance application for optimal transport company selection

This article presents the application of stochastic dominance to choose a transport company. Three courier companies were analysed. The first option was the DHL Poland company operating in more than 220 countries, the second one was DPD (Dynamic Parcel Distribution), and, the third carrier was GLS (General Logistic System) prospering in 42 countries, mainly in Europe. In the theoretical part of the paper, the definitions related to stochastic dominance of the first (First Stochastic Dominance FSD) and second (Second Stochastic Dominance SSD) orders were discussed. The objective of the article, which was to show various types of stochastic dominance from the mathematical perspective, as well as to analyse and compare the most effective investment decisions was achieved. In addition, the theoretical fundamentals of the construction of a multi-criterion model of a decision-making task were described. Based on the figures, the possibilities of applying computer software was presented in order to determine the stochastic dominance occurring between the three compared carriers.